Question

Segment Revenue Horizontal and Vertical Analyses The comparative segment revenues for Clara Corporation, a global quick-serve restaurant company, are as follows: Recent Year Prior Year (in millions) (in millions) $ 64,976 $ 62,000 China 71,000 63,545 KFC 33,325 31,000 Pizza Hut 29,000 31,291 Taco Bell 141 115 India $ 193,252 $ 193,141 Total 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.

Answer 1

	Recent Year ( in millions)	Prior Year ( in millions)	Net Change ( Recent year - Prior year)	% Change ( Net Change/Prior year)
China	64,976	62000	(64,976-62,000) = 2,976	(2,976/62,000) = 4.8%
KFC	63545	71800	(63,545-71,800) = -8,225	(-8,225/71,800) = -11.5%
Pizza Hut	33,325	31000	(33,325-31,000) = 2,325	(2,325/31,000) = 7.5%
Taco Bell	31291	29000	(31,291-29,000) = 2,291	(2,291/29,000) = 7.9%
India	115	141	(115-141) = -26	(-26/141) = -18.4%
Total	193,252	193,941	-689	(-689/193,941) = -0.4%

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