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 NASCAR event management fees 123,212 119,101 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.

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 fill in the blank 15c8f5ff201c036_1 % $86,949 fill in the blank 15c8f5ff201c036_2 % Event-related revenue 140,210 fill in the blank 15c8f5ff201c036_3 % 133,632 fill in the blank 15c8f5ff201c036_4 % NASCAR broadcasting revenue 216,592 fill in the blank 15c8f5ff201c036_5 % 209,155 fill in the blank 15c8f5ff201c036_6 % Other operating revenue 26,780 fill in the blank 15c8f5ff201c036_7 % 28,622 fill in the blank 15c8f5ff201c036_8 % Total revenues $461,914 fill in the blank 15c8f5ff201c036_9 % $458,358 fill in the blank 15c8f5ff201c036_10 % Expenses and other: Direct expense of events $101,876 fill in the blank 15c8f5ff201c036_11 % $98,973 fill in the blank 15c8f5ff201c036_12 % NASCAR event management fees 123,212 fill in the blank 15c8f5ff201c036_13 % 119,101 fill in the blank 15c8f5ff201c036_14 % Other direct operating expenses 18,502 fill in the blank 15c8f5ff201c036_15 % 18,782 fill in the blank 15c8f5ff201c036_16 % General and administrative 164,949 fill in the blank 15c8f5ff201c036_17 % 177,132 fill in the blank 15c8f5ff201c036_18 % Total expenses and other $408,539 fill in the blank 15c8f5ff201c036_19 % $413,988 fill in the blank 15c8f5ff201c036_20 % Income from continuing operations $53,375 fill in the blank 15c8f5ff201c036_21 % $44,370 fill in the blank 15c8f5ff201c036_22 % b. Overall revenue some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue by 1.3% of total revenue, while event-related revenue by 1.2% of total revenue. NASCAR event management fees, by 0.7% of total revenue. General and administrative expenses, however, by over 2.9% of total revenue. It appears that has helped the company significantly improve its income from continuing operations.