Question

The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $116,034 $130,239 Event-related revenue 151,562 163,621 NASCAR broadcasting revenue 192,662 185,394 Other operating revenue 29,902 26,951 Total revenues $490,160 $506,205 Expenses and other: Direct expense of events $101,402 $106,204 NASCAR purse and sanction fees 122,950 120,146 Other direct expenses 18,908 20,352 General and administrative 183,215 241,223 Total expenses and other $426,475 $487,925 Income from continuing operations $63,685 $18,280 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers.

Answer 1

Speedway Motorsports Inc

Comparative income statement (vertical form):

Comparative income statement (vertical form)
for the year ended ….
	Current Year		Previous Year
	Amount	Percent	Amount	Percent
Revenues:
Admissions	$116,034	23.67%	$130,239	25.73%
Event-related revenue	$151,562	30.92%	$163,621	32.32%
NASCAR broadcasting revenue	$192,662	39.31%	$185,394	36.62%
Other operating revenue	$29,902	6.10%	$26,951	5.30%
Total revenues	$490,160	100%	$506,205	100%
Expenses:
Direct expenses	$101,402	20.69%	$106,204	20.98%
NASCAR purse and sanction fee	$122,950	25.10%	$120,146	23.73%
Other direct expenses	$18,908	3.90%	$20,352	4%
General and administrative	$183,215	37.39%	$241,223	47.65%
total expenses	$426,475	87%	$487,925	96.40%
Income from continuing operations	$63,685	13%	$18,280	3.60%