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. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways, Revenues: Current Year Previous Year 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) $61,196 $(542,692) $(46,229) Income from continuing operations 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. Revenues Speedway Motorsports, Inc. Comparative Income Statement (in thousands of dollars) For the Years Ended December 311 Current Year Current Year Amount $90,639 Percent Prior Year Prior Year Amount Percent $100,694 eBook 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 Current Year Prior Year Prior Year V Revenues: Amount Percent Amount Percent Admissions $90,639 % $100,694 % Event-related revenue 136,900 % 146,980 % NASCAR broadcasting revenue 224,227 96 217,469 % Other operating revenue 60,390 % 31,320 % Total revenues $512,156 % $496,463 y 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) $61.1961 % $(46,229) Income from continuing operations b. Which of the following statements are correct? 1. Overall revenue increased between the two years, with changes in the mix of revenue sources. The NASCAR broadcasting revenue remained stable while admissions revenu decreased as a percentage of total revenue. 2. One of the major expense categories, NASCAR event management fees, remained stable. 3. The Direct expense of events increased, while Other direct expenses remained stable. 4. 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