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:

20Y3 20Y2

Camping $280,000 $240,000

Fishing140,000 160,000

Total revenues $420,000 $400,000

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

Answers:

Horizontal analysis: 20Y3 20Y2 Amount Percent Camping $280,000 $240,000 $ 40,000 16.7% Fishing 140,000 160,000 (20,000) –12.5% Total revenues $420,000 $400,000 $ 20,000 5.0% Vertical analysis: Amount Percent Amount Percent Camping $280,000 66.7% $240,000 60.0% Fishing 140,000 33.3% 160,000 40.0% Total revenues $420,000 100.0% $400,000 100.0%