Back Country Life, Inc., does business in two product segments, Camping and Fishing. The following annual revenue information was determined from the accounting system's invoice information: 20Y3 20Υ2 Camping Fishing $280,000 $240,000 140,000 160,000 $400,000 Total revenues $420,000 Prepare horizontal and vertical analyses of the segments. Round to one decimal place.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter3: The Adjusting Process
Section: Chapter Questions
Problem 30E
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Back Country Life, Inc., does business in two product segments, Camping and Fishing.
The following annual revenue information was determined from the accounting system's
invoice information:
20Y3
20Υ2
Camping
Fishing
$280,000
$240,000
140,000
160,000
$400,000
Total revenues
$420,000
Prepare horizontal and vertical analyses of the segments. Round to one decimal place.
Transcribed Image Text:Back Country Life, Inc., does business in two product segments, Camping and Fishing. The following annual revenue information was determined from the accounting system's invoice information: 20Y3 20Υ2 Camping Fishing $280,000 $240,000 140,000 160,000 $400,000 Total revenues $420,000 Prepare horizontal and vertical analyses of the segments. Round to one decimal place.
Expert Solution
Step 1

Horizontal analysis is a method of analysis of financia;l statement where changes in the results of the company over certain a period is analysed. The required horizontal analysis has been presented below

Increase/(Decrea Increase/(Dec
se ) in amount
2012 over 2012
rease ) in %
over 2012
2013
40000
(20,000)
Camping
Fishing
Total revenues
240000
160,000
16.7%
280000
140000
-12.5%
5.0%
420000
400000
20000
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