The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Company S, Inc. (COSI), owner and operator of several major motor speedways, such as the Chicago, Des Moines, Charlotte, Austin, and San Diego Motor Speedways.

				Year 2			Year 1
Revenues:
	Admissions			$102,500			$100,000
	Event-related revenue			110,000			105,000
	NASCAR broadcasting revenue			140,000			130,000
	Other operating revenue			30,000			25,000
		Total revenue		$382,500			$360,000
Expenses and other:
	Direct expense of events			$119,000			$110,500
	NASCAR event management fees			110,500			102,000
	Other direct expenses			59,500			51,000
	General and administrative			136,870			59,500
		Total expenses		$425,870			$323,000
			Income (loss) from continuing operations	$-43,370			$37,000

Note: General & administrative expenses for the Year 2 includes impairment of goodwill of $68,870. The impairment of goodwill is discussed in Chapter 7.

Question Content Area

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

Company S, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1

	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
Revenues:
Admissions	$102,500		$100,000
Event-related revenue	110,000		105,000
NASCAR broadcasting revenue	140,000		130,000
Other operating revenue	30,000		25,000
Total revenue	$382,500		$360,000
Expenses and other:
Direct expense of events	$119,000		$110,500
NASCAR event management fees	110,500		102,000
Other direct expenses	59,500		51,000
General and administrative	136,870		59,500
Total expenses	$425,870		$323,000
Income (loss) from continuing operations	$-43,370		$37,000