Vertical Analysis of Income Statement The following comparative income statement in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $78,332 $86,949 Event-related revenue 140,210 133,632 NASCAR broadcasting revenue 216,592 209,155 Other operating revenue 26,780 28,622 Total revenues $461,914 $458,358 Expenses and other: Direct expense of events $101,876 $98,973 123,212 119,101 NASCAR event management fees Other direct operating expenses 18,502 18,782 General and administrative 164,949 177,132 Total expenses and other $408,539 $413,988 Income from continuing operations $53,375 $44,370 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. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place. 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 $78,332 % $86,949 % Event-related revenue 140,210 % 133,632 % NASCAR broadcasting revenue 216,592 % 209,155 % Other operating revenue 26,780 % 28,622 % Total revenues $461,914 % $458,358 % Expenses and other: Direct expense of events $101,876 % $98,973 % 123,212 % 119,101 % NASCAR event management fees Other direct operating expenses 18,502 % 18,782 % General and administrative 164,949 % 177,132 % Total expenses and other $408,539 % $413,988 % Income from continuing operations $53,375 % $44,370 % Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 2041 20Y2 Assets 2011 Current assets: Cash $1,050,000 $ 950,000 Marketable securities 301,000 420,000 500,000 585,000 420,000 380,000 20,000 $2,270,000 108,000 $2,464,000 800,000 5,760,000 800,000 5,184,000 $9,024,000 $8,254,000 Accounts receivable (net) Inventories Prepaid expenses Total current assets Long-term investments Property, plant, and equipment (net) Total assets Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities Total liabilities $880,000 $800,000 $200,000 3,000,000 $0 $3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 $880,000 $800,000 $0 $200,000 3,000,000 $3,200,000 $3,000,000 $3,000,000 Liabilities Current liabilities Long-term liabilities: Mortgage note payable, 6% Bonds payable, 4% Total long-term liabilities Total liabilities Stockholders' Equity Preferred 4% stock, $5 par Common stock, $5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $4,080,000 $3,800,000 $250,000 $250,000 500,000 500,000 4,194,000 3,704,000 $4,944,000 $4,454,000 $9,024,000 $8,254,000 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock till 18. Dividend yield %
