Back Country Life, Inc., does business in two product segments, Camping and Fishing

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:



2014 2013
Camping $280,000 $240,000
Fishing 140,000 160,000
Total revenue $420,000 $400,000



Prepare a horizontal and vertical analysis of the segments. Round to one decimal place.


Answer:

Horizontal analysis:
2014 2013
Increase/(Decrease)
Amount Percent
Camping $280,000 $240,000 $ 40,000 16.7%
Fishing 140,000 160,000 (20,000) –12.5%
Total revenue $420,000 $400,000 $ 20,000 5.0%
Vertical analysis:
2014 2013
Amount Percent Amount Percent
Camping $280,000 66.7% $240,000 60.0%
Fishing 140,000 33.3% 160,000 40.0%
Total revenue $420,000 100.0% $400,000 100.0%