Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.
Vertical Analysis of Income Statement
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 | $100,694 | $100,798 | |||||
| Event-related revenue | 146,980 | 146,849 | |||||
| NASCAR broadcasting revenue | 217,469 | 207,369 | |||||
| Other operating revenue | 31,320 | 29,293 | |||||
| Total revenues | $496,463 | $484,309 | |||||
| Expenses and other: | |||||||
| Direct expense of events | $104,303 | $102,196 | |||||
| NASCAR event management fees | 133,682 | 128,254 | |||||
| Other direct expenses | 19,541 | 18,513 | |||||
| General and administrative | 177,926 | 194,120 | |||||
| Total expenses and other | $435,452 | $443,083 | |||||
| Income from continuing operations | $61,011 | $41,226 |
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. (Note: Due to rounding, amounts may not total 100%).
Round your percentages to one decimal place.
| Speedway Motorsports, Inc. | ||||
| Comparative Income Statement (in thousands of dollars) | ||||
| For the Years Ended December 31 | ||||
| Current Year Amount | Current Year Percent | Prior Year Amount | Prior Year Percent | |
| Revenues: | ||||
| Admissions | $100,694 | fill in the blank 4527c4fe1fdafe9_1% | $100,798 | fill in the blank 4527c4fe1fdafe9_2% |
| Event-related revenue | 146,980 | fill in the blank 4527c4fe1fdafe9_3% | 146,849 | fill in the blank 4527c4fe1fdafe9_4% |
| NASCAR broadcasting revenue | 217,469 | fill in the blank 4527c4fe1fdafe9_5% | 207,369 | fill in the blank 4527c4fe1fdafe9_6% |
| Other operating revenue | 31,320 | fill in the blank 4527c4fe1fdafe9_7% | 29,293 | fill in the blank 4527c4fe1fdafe9_8% |
| Total revenues | $496,463 | fill in the blank 4527c4fe1fdafe9_9% | $484,309 | fill in the blank 4527c4fe1fdafe9_10% |
| Expenses and other: | ||||
| Direct expense of events | $104,303 | fill in the blank 4527c4fe1fdafe9_11% | $102,196 | fill in the blank 4527c4fe1fdafe9_12% |
| NASCAR event management fees | 133,682 | fill in the blank 4527c4fe1fdafe9_13% | 128,254 | fill in the blank 4527c4fe1fdafe9_14% |
| Other direct expenses | 19,541 | fill in the blank 4527c4fe1fdafe9_15% | 18,513 | fill in the blank 4527c4fe1fdafe9_16% |
| General and administrative | 177,926 | fill in the blank 4527c4fe1fdafe9_17% | 194,120 | fill in the blank 4527c4fe1fdafe9_18% |
| Total expenses and other | $435,452 | fill in the blank 4527c4fe1fdafe9_19% | $443,083 | fill in the blank 4527c4fe1fdafe9_20% |
| Income from continuing operations | $61,011 | fill in the blank 4527c4fe1fdafe9_21% | $41,226 | fill in the blank 4527c4fe1fdafe9_22% |
b. Overall revenue some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue by 1.0% of total revenue, while event-related revenue by 0.7% of total revenue. NASCAR event management fees, by 0.4%of total revenue. General and administrative expenses, however, by over 4% of total revenue. It appears that has helped the company significantly improve its income from continuing operations.
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