1. 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 Motor Speedways Inc., owner and operator of several major motor speedways.

   				Current Year			Previous Year
   Revenues:
   	Admissions			$111,104			$125,416
   	Event-related revenue			153,264			143,920
   	NASCAR broadcasting revenue			176,576			167,564
   	Other operating revenue			55,056			77,100
   		Total revenues		$496,000			$514,000
   Expenses and other:
   	Direct expense of events			$94,736			$102,800
   	NASCAR purse and sanction fees			124,496			133,126
   	Other direct expenses			19,840			28,270
   	General and administrative			204,848			221,534
   		Total expenses and other		$443,920			$485,730
   Income from continuing operations				$52,080			$28,270

   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. Due to rounding differences, you will need to:

   1. Calculate total expenses and other percentage by adding the expense percentages
   2. Calculate the income from continuing operations percentage by deducting total expenses and other percentage from total revenue percentage.

   Motor Speedways 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	$111,104	%	$125,416	%
   Event-related revenue	153,264	%	143,920	%
   NASCAR broadcasting revenue	176,576	%	167,564	%
   Other operating revenue	55,056	%	77,100	%
   Total revenues	$496,000	%	$514,000	%
   Expenses and other:
   Direct expense of events	$94,736	%	$102,800	%
   NASCAR purse and sanction fees	124,496	%	133,126	%
   Other direct expenses	19,840	%	28,270	%
   General and administrative	204,848	%	221,534	%
   Total expenses and other	$443,920	%	$485,730	%
   Income from continuing operations	$52,080	%	$28,270	%

   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 .