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The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Motor Speedways Inc.,
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Motor Speedways Inc., owner and operator of several major motor speedways. Current Year Previous Year Revenues: Admissions $94,800.00 $107,140.00 Event-related revenue 132,720.00 132,951.00 5 NASCAR broadcasting revenue 173,958.00 164,119.00 Other operating revenue 72,522.00 82,790.00 Total revenue $474,000.00 $487,000.00 Expenses and other: Direct expense of events $96,696.00 $93,017.00 NASCAR purse and sanction fees 117,552.00 119,802.00 Other direct expenses 18,960.00 28,733.00 General and administrative 193,392.00 216,228.00 Total expenses and other $426,600.00 $457,780.00 $29,220.00 14 Income from continuing operations $47,400.00 A. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. Rounding instructions B. Comment on the significant changes. Motor Speedways Inc. Comparative Income Statement (in thousands of dollars) For the Years Ended December 31 Current Year Current Year Previous Year Previous Year Amount Percent Amount Percent Revenues: Admissions $94,800.00 $107,140.00 Event-related revenue 132,720.00 132,951.00 NASCAR broadcasting revenue 173,958.00 164,119.00 Other operating revenue 72,522.00 82,790.00 Total revenue $474,000.00 100.0% $487,000.00 100.0% Expenses and other: Direct expense of events $96,696.00 $93,017.00 NASCAR purse and sanction fees 117,552.00 119,802.00 12 Other direct expenses 18,960.00 28,733.00 General and administrative 193,392.00 216,228.00 Total expenses and other $426,600.00 $457,780.00 15 Income from continuing operations $47,400.00 $29,220.00
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