The Walt Disney Company (DIS) is a leading worldwide entertainment company. Disney operates four business segments. These segments and some of their larger businesses are:

▪ Media Networks: ABC Network, ESPN, Disney Channel, and A&E

▪ Parks and Resorts: Walt Disney World Resort, Disneyland, and International Disney Resorts

▪ Studio Entertainment: Walt Disney Pictures, Pixar, Marvel, and Lucasfilm

▪ Consumer Products and Interactive Media: Licensing of Disney characters, publishing, and retail stores Recent comparative revenues for the four segments are as follows (in millions):

a. Prepare a vertical analysis of the segment sales to total sales for Year 1 and Year 3. Round percentages to nearest whole percent.

b. Using the analysis in (a), has the relative segment sales changed between Year 1 and Year 3? 

c. Prepare a horizontal analysis of the segment sales between Year 1 and Year 3. Round
percentages to nearest whole percent.

d. Interpret the horizontal segment sales analysis in (c).

Transcribed Image Text:

Year 3 Year 1 Segment Media Networks Parks and Resorts Studio Entertainment Consumer Products and Interactive Media Total $23,689 16,974 9,441 5,528 $21,152 15,099 7,278 5,284 $48,813 $55,632