Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 20, Problem 4ADM
LVMH: Group segment sales and EBITDA analysis
LVMH Group is a French domiciled company known for Dior, Givenchy, Louis Vuitton, and many other fashion brands. LVMH's operating segment revenues, operating income, and
- A. Prepare a vertical analysis of the segment sales to total sales. (Round to nearest whole percent.)
- B. Interpret the vertical analysis in (A).
- C. Compute (1) EBITDA and (2) EBITDA as a percent of sales (EBITDA margin) for each segment. (Round to nearest whole percent.)
- D. Prepare a column bar chart of the EBITDA as a percent of sales for the segments in descending order.
- E. Interpret the chart in (D).
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NORTHEAST AIRLINES
Income Statement (summarized)
For the Year Ended December 31
eferences
(in millions of U.S. dollars)
2016
2015
Sales Revenues
$ 20,925
100
$ 20,320
100 %
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6,823
33
6,408
Fuel, Oil, Repairs, and Maintenance
4,717
4,646
Other Operating Expenses
5,200
4,725
23
Other Expenses (Revenues)
238
1
652
Income before Income Tax Expense
3,947
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7
$ 2,577
% $ 2,528
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中
Starship 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
$10,479
$8,073
EMEA*
1,217
1,295
China/Asia Pacific
2,396
1,130
Channel Development**
1,731
1,546
Other
2,236
1,695
Total
$18,059
$13,739
*Europe, Middle East, and Africa
**Sells packaged coffee and teas globally
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.
Starship Corporation
Horizontal Analysis
Recent Year (in millions)
Prior Year (in millions)
Increase (Decrease)Amount
Increase (Decrease)Percent
Americas
$10,479
$8,073
$fill in the blank 15396ff9101df9f_1
fill in the blank 15396ff9101df9f_2%
EMEA
1,217
1,295
fill in the blank 15396ff9101df9f_3
fill…
Chapter 20 Solutions
Financial & Managerial Accounting
Ch. 20 - What types of costs are customarily included in...Ch. 20 - Which type of manufacturing cost (direct...Ch. 20 - Which of the following costs would be included in...Ch. 20 - In the variable costing income statement, how are...Ch. 20 - Since all costs of operating a business are...Ch. 20 - Discuss how financial data prepared on the basis...Ch. 20 - Why might management analyze product...Ch. 20 - Explain why rewarding sales personnel on the basis...Ch. 20 - Discuss the two factors affecting both sales and...Ch. 20 - How is the quantity factor for an increase or a...
Ch. 20 - Explain why service companies use different...Ch. 20 - Variable costing Marley Company has the following...Ch. 20 - Variable costingproduction exceeds sales Fixed...Ch. 20 - Variable costing sales exceed production The...Ch. 20 - Analyzing income under absorption and variable...Ch. 20 - Contribution margin by segment The following...Ch. 20 - Contribution margin analysis The actual variable...Ch. 20 - Inventory valuation under absorption costing and...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Cost of goods manufactured, using variable costing...Ch. 20 - Variable costing income statement On November 30,...Ch. 20 - Absorption costing income statement On March 31....Ch. 20 - Variable costing income statement The following...Ch. 20 - Estimated income statements, using absorption and...Ch. 20 - Variable and absorption costing Ansara Company had...Ch. 20 - Prob. 20.10EXCh. 20 - Prob. 20.11EXCh. 20 - Product profitability analysis Power Train Sports...Ch. 20 - Territory and product profitability analysis Coast...Ch. 20 - Sales territory and salesperson profitability...Ch. 20 - Segment profitability analysis The marketing...Ch. 20 - Prob. 20.16EXCh. 20 - Contribution margin analysis sales Select Audio...Ch. 20 - Prob. 20.18EXCh. 20 - Contribution margin analysis variable costs Based...Ch. 20 - Variable costing income statement for a service...Ch. 20 - Contribution margin reporting and analysis for a...Ch. 20 - Variable costing income statement and contribution...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Income statements under absorption costing and...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Salespersons' report and analysis Walthman...Ch. 20 - Segment variable costing income statement and...Ch. 20 - Contribution margin analysis Farr Industries Inc....Ch. 20 - Prob. 20.1BPRCh. 20 - Income statements under absorption costing and...Ch. 20 - Absorption and variable costing income statements...Ch. 20 - Salespersons' report and analysis Pachec Inc....Ch. 20 - Variable costing income statement and effect on...Ch. 20 - Contribution margin analysis Mathews Company...Ch. 20 - Prob. 1ADMCh. 20 - Prob. 2ADMCh. 20 - Apple Inc.: Segment revenue analysis Segment...Ch. 20 - LVMH: Group segment sales and EBITDA analysis LVMH...Ch. 20 - Prob. 20.1TIFCh. 20 - Communication Bon Jager Inc. manufactures and...
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