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			$92,316			$104,544
	Event-related revenue			135,648			131,648
	NASCAR broadcasting revenue			179,922			170,368
	Other operating revenue			63,114			77,440
		Total revenue		$471,000			$484,000
Expenses and other:
	Direct expense of events			$91,374			$98,252
	NASCAR purse and sanction fees			121,518			120,032
	Other direct expenses			24,492			25,168
	General and administrative			177,567			220,704
		Total expenses and other		$414,951			$464,156
Income from continuing operations				$56,049			$19,844

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	$92,316	%	$104,544	%
Event-related revenue	135,648	%	131,648	%
NASCAR broadcasting revenue	179,922	%	170,368	%
Other operating revenue	63,114	%	77,440	%
Total revenue	$471,000	%	$484,000	%
Expenses and other:
Direct expense of events	$91,374	%	$98,252	%
NASCAR purse and sanction fees	121,518	%	120,032	%
Other direct expenses	24,492	%	25,168	%
General and administrative	177,567	%	220,704	%
Total expenses and other	$414,951	%	$464,156	%
Income from continuing operations	$56,049	%	$19,844	%

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a. For each year, show each item as a percentage of total revenues.

b. While overall revenue decreased some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting revenue increased as a percent of total revenue by 3 percentage points, while the percent of admissions revenue to total revenue decreased by 2 percentage points. Overall, it appears that income from continuing operations has significantly improved because of aggressive cost cutting .