Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Textbook Question
Chapter 5, Problem 5.27EX
Segment revenue horizontal and vertical analyses
The comparative segment revenues for Yum! Brands, a global quick-serve restaurant company, are as follows:
| Recent Year (in millions) | Prior Year (in millions) | |
| China | $ 6,909 | $ 6,934 |
| KFC | 2,948 | 3,193 |
| Pizza Hut | 1,145 | 1,148 |
| Taco Bell | 1,988 | 1,863 |
| India | 115 | 141 |
| Total | $13,105 | $13,279 |
- a. Provide a horizontal analysis of the segment revenues using the prior year as the base year. Round whole percents to one decimal place.
- b. Provide a vertical analysis of the segment revenues for both years. Round whole percents to one decimal place.
- c. What conclusions can be drawn from your analyses?
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The comparative segment revenues for Yum! Brands, a global quick-serve restaurant
company, are as follows:
Recent Year
Prior Year
(in millions)
(in millions)
$ 6,909
$ 6,934
China
KFC
2,948
3,193
Pizza Hut
1,145
1,148
Taco Bell
1,863
1,988
India
115
141
Total
$13,105
$13,279
a. Provide a horizontal analysis of the segment revenues using the prior year as the base
year. Round whole percents to one decimal place.
b. Provide a vertical analysis of the segment revenues for both years. Round whole percents
to one decimal place.
c. What conclusions can be drawn from your analyses?
Payton Company has the following segment revenues for the two most recent fiscal years.
Segment
Current Year (in millions)
Prior Year (in millions)
China
$770
$650
Canada
326
240
Other countries
212
168
Total revenues
$1,308
$1,058
Prepare a vertical analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal
place.
Payton Company
Vertical Analysis
Current Year
Prior Year
Current Year
Percent
Prior Year
Segment
Amount
Amount
Percent
(in millions)
(in millions)
China
$770
$650
%
Canada
326
240
Other countries
212
168
Total revenues
$1,308
$1,058
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Segment Revenue Vertical Analysis
Newton Corporation is one of the world's largest entertainment companies that includes Gravity films, Apple Broadcasting, Gravity
News, the GR, and various satellite properties. The company provided revenue disclosures by its major product segments in the notes
to its financial statements as follows:
a. Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues.
Round all percents to one decimal place.
For a Recent Year
Major Product Segments
(in millions)
Percent (%)
Cable Network Programming
$23,925
Television
8,338
Filmed Entertainment
5,154
Direct Broadcast Satellite Television
4,483
Total revenues of major segments
$41,900
%
Chapter 5 Solutions
Accounting
Ch. 5 - Why would a company maintain separate accounts...Ch. 5 - What are the major advantages of the use of...Ch. 5 - Prob. 3DQCh. 5 - How many postings to Fees Earned for the month...Ch. 5 - During the current month, the following errors...Ch. 5 - Prob. 6DQCh. 5 - What is an electronic form, and how is it used in...Ch. 5 - When are transactions posted in a computerized...Ch. 5 - What happens to the special journal in a...Ch. 5 - Prob. 10DQ
Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Segment analysis McHale Company does business in...Ch. 5 - Segment analysis Back Country Life, Inc., does...Ch. 5 - Identify postings from revenue journal Using the...Ch. 5 - Accounts receivable ledger Based on the data...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify transactions in accounts receivable...Ch. 5 - Prepare journal entries in a revenue journal...Ch. 5 - Posting a revenue journal The revenue journal for...Ch. 5 - Accounts receivable subsidiary ledger The revenue...Ch. 5 - Revenue and cash receipts journals Transactions...Ch. 5 - Revenue and cash receipts journals Lasting Summer...Ch. 5 - Prob. 5.11EXCh. 5 - Prob. 5.12EXCh. 5 - Identify transactions in accounts payable...Ch. 5 - Prepare journal entries in a purchases journal...Ch. 5 - Posting a purchases journal The purchases journal...Ch. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Purchases and cash payments journals Transactions...Ch. 5 - Purchases and cash payments journals Happy Tails...Ch. 5 - Error in accounts payable subsidiary ledger After...Ch. 5 - Prob. 5.20EXCh. 5 - Cash receipts journal The following cash receipts...Ch. 5 - Computerized accounting systems Most computerized...Ch. 5 - Prob. 5.23EXCh. 5 - Prob. 5.24EXCh. 5 - Segment revenue horizontal analysis Starbucks...Ch. 5 - Prob. 5.26EXCh. 5 - Segment revenue horizontal and vertical analyses...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable subsidiary account,...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - Communication Internet-based accounting software...Ch. 5 - Manual vs. computerized accounting systems The...Ch. 5 - Accounts receivable and accounts payable A...Ch. 5 - Design of accounting systems For the past few...
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