Vertical analysis of income statement Obj. 2 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)

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.

AppendixLO1