Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 14, Problem 2E
1.
To determine
Vertical Analysis
Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount.
Formula:
This analysis is otherwise called as common-size statement.
To prepare: Comparative income statement for the two-year period.
Given info: Income statement for the two year period
2.
To determine
To comment: Significant relationships revealed by the vertical analysis.
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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
$78,332
$86,949
Event-related revenue
140,210
133,632
NASCAR broadcasting revenue
216,592
209,155
Other operating revenue
26,780
28,622
Total revenues
$461,914
$458,358
Expenses and other:
Direct expense of events
$101,876
$98,973
NASCAR event management fees
123,212
119,101
Other direct operating expenses
18,502
18,782
General and administrative
164,949
177,132
Total expenses and other
$408,539
$413,988
Income from continuing operations
$53,375
$44,370
a. Prepare a…
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
$78,332
$86,949
Event-related revenue
140,210
133,632
NASCAR broadcasting revenue
216,592
209,155
Other operating revenue
26,780
28,622
Total revenues
$461,914
$458,358
Expenses and other:
Direct expense of events
$101,876
$98,973
NASCAR event management fees
123,212
119,101
Other direct operating expenses
18,502
18,782
General and administrative
164,949
177,132
Total expenses and other
$408,539
$413,988
Income from continuing operations
$53,375
$44,370
Prepare a…
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
$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…
Chapter 14 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 14 - Prob. 1DQCh. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 1BECh. 14 - Prob. 2BECh. 14 - Prob. 3BECh. 14 - Prob. 4BECh. 14 - Prob. 5BECh. 14 - Prob. 6BECh. 14 - Prob. 7BECh. 14 - Prob. 8BECh. 14 - Prob. 9BECh. 14 - Prob. 10BECh. 14 - Prob. 11BECh. 14 - Prob. 1ECh. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Current position analysis The bond indenture for...Ch. 14 - Prob. 9ECh. 14 - Accounts receivable analysis Xavier Stores Company...Ch. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Ratio of liabilities to stockholders equity and...Ch. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 24ECh. 14 - Prob. 25ECh. 14 - Comprehensive income Anson Industries, Inc.,...Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Prob. 5PACh. 14 - Prob. 1PBCh. 14 - Prob. 2PBCh. 14 - Prob. 3PBCh. 14 - Prob. 4PBCh. 14 - Prob. 5PBCh. 14 - Prob. 1FSACh. 14 - Prob. 1ADMCh. 14 - Prob. 2ADMCh. 14 - Prob. 3ADMCh. 14 - Prob. 1TIFCh. 14 - Prob. 3TIF
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- 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 $78,332 $86,949 Event-related revenue 140,210 133,632 NASCAR broadcasting revenue 216,592 209,155 Other operating revenue 26,780 28,622 Total revenues $461,914 $458,358 Expenses and other: Direct expense of events $101,876 $98,973 NASCAR event management fees 123,212 119,101 Other direct operating expenses 18,502 18,782 General and administrative 164,949 177,132 Total expenses and other $408,539 $413,988 Income from continuing operations $53,375 $44,370 Question…arrow_forwardVertical 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…arrow_forwardVertical 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. (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 (43,784) (19,541) General and administrative (166,663) (285,166) Total expenses and other $(450,960) $(542,692) Income from continuing operations $61,196 $(46,229)…arrow_forward
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