Vertical analysis of income statement OBJ. 1 The following comparative income statement (in thousands of dollars) for the 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 revenue $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 comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place.

b. Comment on the significant changes.