Segment Revenue Horizontal and Vertical Analyses

The comparative segment revenues for Clara Corporation, a global quick-serve restaurant company, are as follows:

	Recent Year (in millions)	Prior Year (in millions)
KFC	$70,532		$77,000
Taco Bell	23,759		23,000
Pizza Hut	32,085		31,000
Total	$ 126,376		$ 131,000

Question Content Area

a. Provide a horizontal analysis of the regional segment revenues using prior year as the base year. Round all percentages to one decimal place. Enter all amounts in millions. Enter negative values as negative numbers.

	Recent Year (in millions)	Prior Year (in millions)	Increase (Decrease) Amount	Increase (Decrease) Percent
KFC	$70,532	$77,000
Taco Bell	23,759	23,000
Pizza Hut	32,085	31,000
Total revenues	$126,376	$131,000

Question Content Area

b. Provide a vertical analysis of the regional segment revenues for both years. Round all percentages to one decimal place and round the total percentage to 100 if necessary.

	Recent Year Amount (in millions)	Recent Year Percent	Prior Year Amount (in millions)	Prior Year Percent
KFC	$70,532
Taco Bell	23,759
Pizza Hut	32,085
Total revenues	$126,376

Question Content Area

c. Which of the following showed a percentage decrease based on the vertical analysis?