In: Accounting
Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:
Recent Year (in millions, rounded) |
Prior Year (in millions, rounded) |
|||
Americas | $9,904 | $7,974 | ||
China/Asia Pacific | 2,396 | 1,130 | ||
Channel Development* | 1,731 | 1,546 | ||
EMEA** | 1,217 | 1,295 | ||
Other | 2,100 | 1,675 | ||
Total | $17,348 | $13,620 |
*Sells packaged coffee and teas globally
**Europe, Middle East, and Africa
a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreasing values.
Starbucks Corporation | ||||
Horizontal Analysis | ||||
Recent Year (in millions) | Prior Year (in millions) | Increase (Decrease) Amount |
Increase (Decrease) Percent |
|
Americas | $9,904 | $7,974 | $ | % |
China/Asia Pacific | 2,396 | 1,130 | ||
Channel Development | 1,731 | 1,546 | ||
EMEA | 1,217 | 1,295 | ||
Other | 2,100 | 1,675 | ||
Total revenues | $17,348 | $13,620 | $ |
b. Prepare a vertical analysis of the segment data. Round all percents to one decimal place and round the total percentage to 100 if necessary.
Starbucks Corporation | ||||
Vertical Analysis | ||||
Recent Year Amount (in millions) |
Recent Year Percent | Prior Year Amount (in millions) |
Prior Year Percent | |
Americas | $9,904 | % | $7,974 | % |
China/Asia Pacific | 2,396 | 1,130 | ||
Channel Development | 1,731 | 1,546 | ||
EMEA | 1,217 | 1,295 | ||
Other | 2,100 | 1,675 | ||
Total revenues | $17,348 | % | $13,620 | % |
c. Based on the percentages in the vertical analysis, which of Starbucks's operations grew more?
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.
Major Product Segments |
For a Recent Year (in millions) |
Percent (%) |
|
Cable Network Programming | $32,718 | % | |
Television | 9,397 | ||
Filmed Entertainment | 7,085 | ||
Total revenues of major segments | $49,200 | % |