Chapter 14, Problem 14.2EX

a Current fiscal year income from continuing operations, 11,9% 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 Motors ports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.

	Current Year	Previous Year
Revenues:
Admissions	$ 90,639	$ 100,694
Event related revenue	136,900	146,980
NASCAR broadcasting revenue	224,227	217,469
Other operating revenue	60,390	31,320
Total revenues	$ 512,156	$ 496,463
Expenses and other:
Direct expense of events	$ (102,786)	$ (104,303)
NASCAR event management fees	(137,727)	(133,682)
Other direct expenses	(43,764)	(19,541)
General and administrative	(166,663)	(288,166)
Total expenses and other	$(450,960)	$(542392)
Income from continuing operations	$ 61,196	$ (46,229)

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

b. Comment on the significant changes