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.

1		Current Year	Previous Year
2	Revenues:
3	Admissions	$96,224.00	$108,712.00
4	Event-related revenue	139,872.00	154,940.00
5	NASCAR broadcasting revenue	192,944.00	182,372.00
6	Other operating revenue	66,960.00	61,976.00
7	Total revenue	$496,000.00	$508,000.00
8	Expenses and other:
9	Direct expense of events	$98,208.00	$100,584.00
10	NASCAR purse and sanction fees	126,976.00	128,016.00
11	Other direct expenses	27,776.00	26,924.00
12	General and administrative	188,480.00	227,076.00
13	Total expenses and other	$441,440.00	$482,600.00
14	Income from continuing operations	$54,560.00	$25,400.00

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

Comment on the significant changes.

While overall revenue ______ some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting revenue _______ as a percent of total revenue by 3 percentage points, while the percent of admissions revenue to total revenue __________ by 2 percentage points. Overall, it appears that income from continuing operations has significantly improved because of ________________.

ANSWER SHEET

Motor Speedways Inc.

Comparative Income Statement (in thousands of dollars)

For the Years Ended December 31

1		Current Year	Current Year	Previous Year	Previous Year
2		Amount	Percent	Amount	Percent
3	Revenues:
4	Admissions	$96,224.00		$108,712.00
5	Event-related revenue	139,872.00		154,940.00
6	NASCAR broadcasting revenue	192,944.00		182,372.00
7	Other operating revenue	66,960.00		61,976.00
8	Total revenue	$496,000.00	100.0%	$508,000.00	100.0%
9	Expenses and other:
10	Direct expense of events	$98,208.00		$100,584.00
11	NASCAR purse and sanction fees	126,976.00		128,016.00
12	Other direct expenses	27,776.00		26,924.00
13	General and administrative	188,480.00		227,076.00
14	Total expenses and other	$441,440.00		$482,600.00
15	Income from continuing operations	$54,560.00		$25,400.00