The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $90,639 $100,694 Event-related revenue 136,900 146,980 NASCAR broadcasting revenue 224,227 217,469 Other operating revenue 60,390 31,320 Total revenues $512,156 $496,463 Expenses and other: Direct expense of events $(102,786) $(104,303) NASCAR event management fees (137,727) (133,682) Other direct expenses (43,784) (19,541) General and administrative (166,663) (285,166) Total expenses and other $(450,960) $(542,692) Income from continuing operations $61,196 $(46,229) Question Content Area a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place. Speedway Motorsports, Inc. Comparative Income Statement (in thousands of dollars) For the Years Ended December 31 Current Year Amount Current Year Percent Prior Year Amount Prior Year Percent Revenues: Admissions $90,639 fill in the blank 5d0572f6503bfc5_1 % $100,694 fill in the blank 5d0572f6503bfc5_2 % Event-related revenue 136,900 fill in the blank 5d0572f6503bfc5_3 % 146,980 fill in the blank 5d0572f6503bfc5_4 % NASCAR broadcasting revenue 224,227 fill in the blank 5d0572f6503bfc5_5 % 217,469 fill in the blank 5d0572f6503bfc5_6 % Other operating revenue 60,390 fill in the blank 5d0572f6503bfc5_7 % 31,320 fill in the blank 5d0572f6503bfc5_8 % Total revenues $512,156 fill in the blank 5d0572f6503bfc5_9 % $496,463 fill in the blank 5d0572f6503bfc5_10 % Expenses and other: Direct expense of events $(102,786) fill in the blank 5d0572f6503bfc5_11 $(104,303) fill in the blank 5d0572f6503bfc5_12 NASCAR event management fees (137,727) fill in the blank 5d0572f6503bfc5_13 (133,682) fill in the blank 5d0572f6503bfc5_14 Other direct expenses (43,784) fill in the blank 5d0572f6503bfc5_15 (19,541) fill in the blank 5d0572f6503bfc5_16 General and administrative (166,663) fill in the blank 5d0572f6503bfc5_17 (285,166) fill in the blank 5d0572f6503bfc5_18 Total expenses and other $(450,960) fill in the blank 5d0572f6503bfc5_19 $(542,692) fill in the blank 5d0572f6503bfc5_20 Income from continuing operations $61,196 fill in the blank 5d0572f6503bfc5_21 % $(46,229) fill in the blank 5d0572f6503bfc5_22 Question Content Area b. Which of the following statements are correct? Overall revenue increased between the two years, with changes in the mix of revenue sources. The NASCAR broadcasting revenue remained stable while admissions revenue decreased as a percentage of total revenue. One of the major expense categories, NASCAR event management fees, remained stable. The Direct expense of events increased, while Other direct expenses remained stable. General and administrative expenses, however, decreased significantly. This decreased general and administrative cost was the driving factor behind the increase in income from continuing operations.