PQ16: 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 International Speedway Corporation (ISCA), owner and operator of several major motor speedways, such as Daytona International Speedway and the Talledega Superspeedway.

Current Year Previous Year

Revenues:

Admissions $109,602 $121,505

Event-related revenue 508,505 491,664

Food, beverage, and merchandise 35,669 41,293

Other operating revenue 21,260 16,971

Total revenues $675,036 $671,433

Expenses and other:

Event-related expenses $(145,093) $(134,136)

NASCAR event management fees (185,200) (178,403)

Food, beverage, and merchandise (27,278) (29,593)

General and administrative (224,303) (233,145)

Total expenses and other $(581,874) $(575,277)

Income from continuing operations $ 93,162 $ 96,156

Required:

1. 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.
2. Comment on the significant changes.

Instructions:

1. Must submit this PQ using an Excel worksheet.
2. Must show all required computations using Excel to support the solution.