The Walt Disney Company is a leading worldwide entertainment company. Disney operates five 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: licensing of Disney characters, publishing, and retail stores

• Interactive: video games

Recent comparative revenues for the five 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 $21,152 15,099 7,278 3,985 1,299 $48,813 Year 1 Media Networks Parks and Resorts Studio Entertainment Consumer Products Interactive Total 19,436 12,920 5,825 3,252 845 $42,278