Revenue and expense data for Searle Technologies Co. are as follows:

The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Bristol, Charlotte, Texas, and Las Vegas Motor Speedways.

				Year 2			Year 1
Revenues:
	Admissions			$100,798			$106,050
	Event-related revenue			146,849			145,749
	NASCAR broadcasting revenue			207,369			199,014
	Other operating revenue			29,293			29,836
		Total revenue		$484,309			$480,649
Expenses and other:
	Direct expense of events			$(102,196)			$(99,500)
	NASCAR purse and sanction fees			(128,254)			(125,003)
	Other direct expenses			(18,513)			(18,640)
	General and administrative			(194,120)			(286,069)
		Total expenses		$(443,083)			$(529,212)
			Income (loss) from continuing operations	$ 41,226			$ 48,563

Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $89,037.

a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentage answers to one decimal place.

Speedway Motorsports, Inc.
Comparative Income Statement (in thousands of dollars)
For the Years Ended Year 2 and Year 1
	Year 2 amount	Year 2 percent	Year 1 amount	Year 1 percent
Revenues:
Admissions	$100,798	%	$106,050	%
Event-related revenue	146,849	%	145,749	%
NASCAR broadcasting revenue	207,369	%	199,014	%
Other operating revenue	29,293	%	29,836	%
Total revenue	$484,309	%	$480,649	%
Expenses and other:
Direct expense of events	$(102,196)	%	$(99,500)	%
NASCAR purse and sanction fees	(128,254)	%	(125,003)	%
Other direct expenses	(18,513)	%	(18,640)	%
General and administrative	(194,120)	%	(286,069)	%
Total expenses	$(443,083)	%	$(529,212)	%
Operating income (loss)	$41,226	%	$(48,563)	%

b. What conclusion can be drawn from the analysis regarding the change in income?

a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. Round to one decimal place.

Searle Technologies Co.
Comparative Income Statement
For the Years Ended December 31, 20Y8 and 20Y7
	20Y8 Amount	20Y8 Percent	20Y7 Amount	20Y7 Percent
	$	%	$	%
		%		%
Gross profit	$	%	$	%
	$	%	$	%
		%		%
Total operating expenses	$	%	$	%
	$	%	$	%
		%		%
Net income	$	%	$	%

b. All of the following are true regarding the vertical analysis for Searle except: