Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Calvin 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 $112,050 $125,195 Event-related revenue 139,938 149,212 NASCAR broadcasting revenue 185,754 175,273 Other operating revenue 60,258 61,320 Total revenue $498,000 $511,000 Expenses and other: Direct expense of events $102,588 $100,667 NASCAR purse and sanction fees 128,484 132,860 Other direct expenses 28,884 30,149 General and administrative 184,758 217,686 Total expenses and other $444,714 $481,362 Income from continuing operations $53,286 $29,638 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers. Calvin 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 $112,050 fill in the blank adef08f21fc9fe5_1% $125,195 fill in the blank adef08f21fc9fe5_2% Event-related revenue 139,938 fill in the blank adef08f21fc9fe5_3% 149,212 fill in the blank adef08f21fc9fe5_4% NASCAR broadcasting revenue 185,754 fill in the blank adef08f21fc9fe5_5% 175,273 fill in the blank adef08f21fc9fe5_6% Other operating revenue 60,258 fill in the blank adef08f21fc9fe5_7% 61,320 fill in the blank adef08f21fc9fe5_8% Total revenue $498,000 fill in the blank adef08f21fc9fe5_9% $511,000 fill in the blank adef08f21fc9fe5_10% Expenses and other: Direct expense of events $102,588 fill in the blank adef08f21fc9fe5_11% $100,667 fill in the blank adef08f21fc9fe5_12% NASCAR purse and sanction fees 128,484 fill in the blank adef08f21fc9fe5_13% 132,860 fill in the blank adef08f21fc9fe5_14% Other direct expenses 28,884 fill in the blank adef08f21fc9fe5_15% 30,149 fill in the blank adef08f21fc9fe5_16% General and administrative 184,758 fill in the blank adef08f21fc9fe5_17% 217,686 fill in the blank adef08f21fc9fe5_18% Total expenses and other $444,714 fill in the blank adef08f21fc9fe5_19% $481,362 fill in the blank adef08f21fc9fe5_20% Income from continuing operations $53,286 fill in the blank adef08f21fc9fe5_21% $29,638 fill in the blank adef08f21fc9fe5_22% Feedback a. For each year, show each item as a percentage of total revenues.

Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Calvin 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 $112,050 $125,195 Event-related revenue 139,938 149,212 NASCAR broadcasting revenue 185,754 175,273 Other operating revenue 60,258 61,320 Total revenue $498,000 $511,000 Expenses and other: Direct expense of events $102,588 $100,667 NASCAR purse and sanction fees 128,484 132,860 Other direct expenses 28,884 30,149 General and administrative 184,758 217,686 Total expenses and other $444,714 $481,362 Income from continuing operations $53,286 $29,638 a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers. Calvin 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 $112,050 fill in the blank adef08f21fc9fe5_1% $125,195 fill in the blank adef08f21fc9fe5_2% Event-related revenue 139,938 fill in the blank adef08f21fc9fe5_3% 149,212 fill in the blank adef08f21fc9fe5_4% NASCAR broadcasting revenue 185,754 fill in the blank adef08f21fc9fe5_5% 175,273 fill in the blank adef08f21fc9fe5_6% Other operating revenue 60,258 fill in the blank adef08f21fc9fe5_7% 61,320 fill in the blank adef08f21fc9fe5_8% Total revenue $498,000 fill in the blank adef08f21fc9fe5_9% $511,000 fill in the blank adef08f21fc9fe5_10% Expenses and other: Direct expense of events $102,588 fill in the blank adef08f21fc9fe5_11% $100,667 fill in the blank adef08f21fc9fe5_12% NASCAR purse and sanction fees 128,484 fill in the blank adef08f21fc9fe5_13% 132,860 fill in the blank adef08f21fc9fe5_14% Other direct expenses 28,884 fill in the blank adef08f21fc9fe5_15% 30,149 fill in the blank adef08f21fc9fe5_16% General and administrative 184,758 fill in the blank adef08f21fc9fe5_17% 217,686 fill in the blank adef08f21fc9fe5_18% Total expenses and other $444,714 fill in the blank adef08f21fc9fe5_19% $481,362 fill in the blank adef08f21fc9fe5_20% Income from continuing operations $53,286 fill in the blank adef08f21fc9fe5_21% $29,638 fill in the blank adef08f21fc9fe5_22% Feedback a. For each year, show each item as a percentage of total revenues.

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.2EX: a Current fiscal year income from continuing operations, 11,9% of revenues Vertical analysis of...

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Vertical Analysis of Income Statement

The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Calvin 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	$112,050			$125,195
	Event-related revenue	139,938			149,212
	NASCAR broadcasting revenue	185,754			175,273
	Other operating revenue	60,258			61,320
		Total revenue	$498,000			$511,000

Expenses and other:
	Direct expense of events	$102,588			$100,667
	NASCAR purse and sanction fees	128,484			132,860
	Other direct expenses	28,884			30,149
	General and administrative	184,758			217,686
		Total expenses and other	$444,714			$481,362
Income from continuing operations	$53,286			$29,638

a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers.

Calvin 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	$112,050	fill in the blank adef08f21fc9fe5_1%	$125,195	fill in the blank adef08f21fc9fe5_2%
Event-related revenue	139,938	fill in the blank adef08f21fc9fe5_3%	149,212	fill in the blank adef08f21fc9fe5_4%
NASCAR broadcasting revenue	185,754	fill in the blank adef08f21fc9fe5_5%	175,273	fill in the blank adef08f21fc9fe5_6%
Other operating revenue	60,258	fill in the blank adef08f21fc9fe5_7%	61,320	fill in the blank adef08f21fc9fe5_8%
Total revenue	$498,000	fill in the blank adef08f21fc9fe5_9%	$511,000	fill in the blank adef08f21fc9fe5_10%
Expenses and other:
Direct expense of events	$102,588	fill in the blank adef08f21fc9fe5_11%	$100,667	fill in the blank adef08f21fc9fe5_12%
NASCAR purse and sanction fees	128,484	fill in the blank adef08f21fc9fe5_13%	132,860	fill in the blank adef08f21fc9fe5_14%
Other direct expenses	28,884	fill in the blank adef08f21fc9fe5_15%	30,149	fill in the blank adef08f21fc9fe5_16%
General and administrative	184,758	fill in the blank adef08f21fc9fe5_17%	217,686	fill in the blank adef08f21fc9fe5_18%
Total expenses and other	$444,714	fill in the blank adef08f21fc9fe5_19%	$481,362	fill in the blank adef08f21fc9fe5_20%
Income from continuing operations	$53,286	fill in the blank adef08f21fc9fe5_21%	$29,638	fill in the blank adef08f21fc9fe5_22%

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a. For each year, show each item as a percentage of total revenues.

b. While overall revenue decreased some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting revenue increased as a percent of total revenue by 3 percentage points, while the percent of admissions revenue to total revenue decreased by 2 percentage points. Overall, it appears that income from continuing operations has significantly improved because of aggressive cost cutting .

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