Vertical Analysis of Income Statement

The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Calvin 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			$108,546			$120,765
	Event-related revenue			141,726			149,380
	NASCAR broadcasting revenue			179,646			169,265
	Other operating revenue			44,082			45,590
		Total revenue		$474,000			$485,000
Expenses and other:
	Direct expense of events			$92,430			$95,060
	NASCAR purse and sanction fees			118,500			122,220
	Other direct expenses			17,064			24,250
	General and administrative			188,178			212,915
		Total expenses and other		$416,172			$454,445
Income from continuing operations				$57,828			$30,555

a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers.

Calvin 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	$108,546	fill in the blank e8157a05f00dfe1_1%	$120,765	fill in the blank e8157a05f00dfe1_2%
Event-related revenue	141,726	fill in the blank e8157a05f00dfe1_3%	149,380	fill in the blank e8157a05f00dfe1_4%
NASCAR broadcasting revenue	179,646	fill in the blank e8157a05f00dfe1_5%	169,265	fill in the blank e8157a05f00dfe1_6%
Other operating revenue	44,082	fill in the blank e8157a05f00dfe1_7%	45,590	fill in the blank e8157a05f00dfe1_8%
Total revenue	$474,000	fill in the blank e8157a05f00dfe1_9%	$485,000	fill in the blank e8157a05f00dfe1_10%
Expenses and other:
Direct expense of events	$92,430	fill in the blank e8157a05f00dfe1_11%	$95,060	fill in the blank e8157a05f00dfe1_12%
NASCAR purse and sanction fees	118,500	fill in the blank e8157a05f00dfe1_13%	122,220	fill in the blank e8157a05f00dfe1_14%
Other direct expenses	17,064	fill in the blank e8157a05f00dfe1_15%	24,250	fill in the blank e8157a05f00dfe1_16%
General and administrative	188,178	fill in the blank e8157a05f00dfe1_17%	212,915	fill in the blank e8157a05f00dfe1_18%
Total expenses and other	$416,172	fill in the blank e8157a05f00dfe1_19%	$454,445	fill in the blank e8157a05f00dfe1_20%
Income from continuing operations	$57,828	fill in the blank e8157a05f00dfe1_21%	$30,555	fill in the blank e8157a05f00dfe1_22%

b. 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 .