World Wrestling Entertainment, Inc. (WWE) is a sports media and entertainment company primarily focused on professional wrestling. WWE’s income statements through operating income for two recent years are as follows (in thousands):

a. Prepare a vertical analysis of the income statements for both years.
b. Interpret the vertical analysis.

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World Wrestling Entertainment, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 960,442 $ 930,160 Revenues Operating expenses: Cost of revenues.. $ (638,199) $ (609,182) Marketing and selling expenses. General and administrative expenses Depreciation expense Total operating expenses (84,713) (95,985) (86,893) (85,446) (34,127) (25,069) $ (815,682) $ 114,478 ..... $ (843,932) $ 116,510 Operating income . ....................