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. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $90,639 $100,694 136,900 146,980 Event-related revenue NASCAR broadcasting revenue 224,227 217,469 Other operating revenue 60,390 31,320 Total revenues $512,156 $496,463 Expenses and other: $(102,786) $(104,303) Direct expense of events NASCAR event management fees Other direct expenses (133,682) (19,541) (137,727) (43,784) (166,663) $(450,960) General and administrative (285,166) Total expenses and other $(542,692) Income from continuing operations $61,196 5(46,229) a. Prepare a comparative Income statement for these two years in Vertical form, stating each item as a percent of reven (Note: Due 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 percentages to one decimal place. Speedway Motorsports, Inc. Comparative Income Statement in thousands of dollars) For the Years Ended December 31 Current Year Current Year Prior Year Prior Year Amount Percent Amount Percent Revenuest $90,639 Admissions 96 $100,694 96 Event-related revenue 136,900 146,980 96 224,227 NASCAR broadcasting revenue 96 9 217,469 Other operating revenue 60,390 31,320 Total revenues $512,156 96 $496,463 Other operating revenue $512,156 $496,463 90 Total revenues $(104,303) Expenses and other: Direct expense of events NASCAR event management fees Other direct expenses General and administrative Total expenses and other Income from continuing operations $(102,786) (137,727) (43,784) (166,663) (133,682) (19,541) (285,166) 5(542,692) $(46,229) $(450,960) $61,196 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 NASCAR broadcasting revenue remained stable while admissions revenue decreased as a percentage of total revenue. 2. One of the major expense categories, NASCAR event management fees, remained stable. 3. The Direct expense of events increased, while other direct expenses remained stable 4. General and administrative expenses, however, decreased significantly. This decreased general and administrative cost was the driving factor behind the increase in income from continuing operations. b. Which of the following statements are correct? 1. Overall revenue increased between the two years, with cha 1, 2 and 4 fe while admissions revenue decreased as a p 2.d jor expense categories, NASCAR event manag 3.1 1, 2 and 3 bense of events increased, while other direct 4. dministrative expenses, however, decreased s 1, 3 and 4 the increase in income from continuing operati
