2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Chapter 5, Problem 5.5BPE
To determine
Segment Analysis
Business can be classified by regions, products or services, types of customers and more; each classification is treated as one segment of the business. Revenues earn from different segments individually, are called segment revenue. Segment revenues are determined from the invoiced data entered in the accounting system. Segment analysis is done to analyze the contribution of different segments to the total operating performance of the company. It is done with the help of horizontal and vertical comparisons.
Horizontal Analysis
This analysis is done to show the trend of various components in financial statements over a period of time. The earliest period is used as the base period and components of financial statements of later periods are compared with the components of the base period.
Vertical analysis
Vertical analysis is the method of financial statement analysis, and it is useful to evaluating a company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing the each item on a financial statement with a total amount from the same statement.
To prepare: Horizontal and vertical analysis of the segments.
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Segment analysis
McHale company does business in two customer segments, Retail and
wholesale. The following annual revenue information was determined
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prepare horizontal and vertical analyses of the segment. Round to one
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Segment Analysis
Verity Company does business in two customer segments: Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
20Y4
Retail
$145,400
$138,500
Wholesale
173,100
189,300
Total revenue
$318,500
$327,800
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers.
Verity Company
Horizontal Analysis
For the Years 20Y4 and 20Y5
20Y5
20Y4
Difference - Amount
Difference - Percent
Retail
$145,400
$138,500
$fill in the blank
fill in the blank %
Wholesale
173,100
189,300
fill in the blank
fill in the blank %
Total revenue
$318,500
$327,800
$fill in the blank
fill in the blank %
Prepare a vertical analysis of the segments. If required, round percentages to one decimal place.
Verity Company
Vertical Analysis
For the Years 20Y4 and 20Y5
20Y5 Amount
20Y5 Percent
20Y4…
Print item
Segment Analysis
Verity Company does business in two customer segments: Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice informatiom
20Υ5
20Υ4
Retail
$145,400
$138,500
Wholesale
173,100
189,300
Total revenue
$318,500
$327,800
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers.
Verity Company
Horizontal Analysis
For the Years 20Y4 and 20Y5
20Υ5
20Υ4
Difference - Amount Difference - Percent
Retail
$145,400 $138,500
0%
Wholesale
173,100 189,300
Total revenue $318,500 $327,800
Prepare a vertical analysis of the segments. If required, round percentages to one decimal place.
Verity Company
Vertical Analysis
For the Years 20Y4 and 20Y5
20Y5 Amount
20Y5 Percent
20Y4 Amount 20Y4 Percent
Retail
$145,000
$138,500
Wholesale
173,100
%
189,300
$327,800
Total revenue 5318,500
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Chapter 5 Solutions
2 Semester Cengage Now, Warren 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 - Prob. 8DQCh. 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 - Prob. 5.3BPECh. 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 - Prob. 5.5BPECh. 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 - Prob. 5.6EXCh. 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 - Identify postings from purchases journal Using the...Ch. 5 - Identify postings from cash payments journal Using...Ch. 5 - Prob. 5.13EXCh. 5 - Prob. 5.14EXCh. 5 - Prob. 5.15EXCh. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Prob. 5.17EXCh. 5 - Prob. 5.18EXCh. 5 - Prob. 5.19EXCh. 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 - Prob. 5.25EXCh. 5 - Prob. 5.26EXCh. 5 - Prob. 5.27EXCh. 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 - Prob. 5.1BPRCh. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Prob. 5.4BPRCh. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...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...Ch. 5 - Communication Internet-based accounting software...
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