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 International Speedway Corporation (ISCA), owner and operator of several major motor speedways, such as Daytona International Speedway and the Talledega Superspeedway.

Line Item Description	Current Year	Previous Year
Revenues:
Admissions	$109,602	$121,505
Event-related revenue	508,505	491,664
Food, beverage, and merchandise	35,669	41,293
Other operating revenue	21,260	16,971
Total revenues	$675,036	$671,433
Expenses and other:
Event-related expenses	$(145,093)	$(134,136)
NASCAR event management fees	(185,200)	(178,403)
Food, beverage, and merchandise	(27,278)	(29,593)
General and administrative	(224,303)	(233,145)
Total expenses and other	$(581,874)	$(575,277)
Income from continuing operations	$93,162	$96,156

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 answers to one decimal place.

International Speedway Corporation Comparative Income Statement (in thousands of dollars) For the Years Ended December 31

Line Item Description	Current Year Amount	Current Year Percent	Previous Year Amount	Previous Year Percent
Revenues:
Admissions	$109,602	Admissions%	$121,505	Admissions%
Event-related revenue	508,505	Event-related revenue%	491,664	Event-related revenue%
Food, beverage, and merchandise	35,669	Food, beverage, and merchandise%	41,293	Food, beverage, and merchandise%
Other operating revenue	21,260	Other operating revenue%	16,971	Other operating revenue%
Total revenues	$675,036	Total revenues%	$671,433	Total revenues%
Expenses and other:
Event-related expenses	$(145,093)	Event-related expenses	$(134,136)	Event-related expenses
NASCAR event management fees	(185,200)	NASCAR event management fees	(178,403)	NASCAR event management fees
Food, beverage, and merchandise	(27,278)	Food, beverage, and merchandise	(29,593)	Food, beverage, and merchandise
General and administrative	(224,303)	General and administrative	(233,145)	General and administrative
Total expenses and other	$(581,874)	Total expenses and other	$(575,277)	Total expenses and other
Income from continuing operations	$93,162	Income from continuing operations	$96,156	Income from continuing operations

Question Content Area

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 event-related revenue increased, while admissions revenue decreased in total revenue. 2. One of the major expense categories, NASCAR event management fees, increased slightly in total revenue. 3. The event-related expenses decreased, while food, beverage, and merchandise expense increased in total revenue. General and administrative expenses increased in total revenue. 4. Overall, income from continuing operations decreased.