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 $95,634 $107,910 Event-related revenue 134,274 142,065 NASCAR broadcasting revenue 172,431 161,865 Other operating revenue 80,661 83,160 Total revenues $483,000 $495,000 Expenses and other: Direct expense of events $100,464 $98,010 NASCAR purse and sanction fees 118,335 127,215 Other direct expenses 20,769 25,740 General and administrative 189,819 221,760 Total expenses and other $429,387 $472,725 Income from continuing operations $53,613 $22,275

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 $95,634 $107,910 Event-related revenue 134,274 142,065 NASCAR broadcasting revenue 172,431 161,865 Other operating revenue 80,661 83,160 Total revenues $483,000 $495,000 Expenses and other: Direct expense of events $100,464 $98,010 NASCAR purse and sanction fees 118,335 127,215 Other direct expenses 20,769 25,740 General and administrative 189,819 221,760 Total expenses and other $472,725 $429,387 $53,613 Income from continuing operations $22,275 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 $95,634 % $107,910 % Event-related revenue 134,274 % 142,065 % NASCAR broadcasting revenue 172,431 % 161,865 % Other operating revenue 80,661 inti % 83,160 % Total revenues $483,000 % $495,000 % % $98,010 % Expenses and other: Direct expense of events $100,464 NASCAR purse and sanction fees 118,335 Other direct expenses 20,769 % 127,215 % % 25,740 % General and administrative 189,819 % 221,760 % Total expenses and other $429,387 % $472,725 % Income from continuing operations $53,613 % $22,275 % b. While overall revenue some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting as a percent of total revenue by 3 percentage points, while the percent of admissions revenue to total revenue percentage points. Overall, it appears that income from continuing operations has significantly improved because of revenue by 2