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1.)

Vertical Analysis Of Ticome Statement Revenue and expense data for Tribal Technologies Co. are as follows: 20Y8 20Y7 Sales $450,000 $362,500 Cost of goods sold 279,000 217,500 Selling expenses 58,500 58,000 Administrative expenses 31,500 32,625 Income tax expense 38,250 29,000 a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. Round to one decimal place. Tribal Technologies Co. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y8 Amount 20Y8 Percent 20Y7 Amount 20Y7 Percent Sales $1 % Cost of goods sold % Gross profit Selling expenses V Administrative expenses Total operating expenses Operating income Income tax expense Net incomeVertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Bristol, Charlotte, Texas, and Las Vegas Motor Speedways. Year 2 Year 1 Revenues: Admissions $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 D Total revenue $496,463 $484,309 Expenses and other: Direct expense of events $(104,303) $(102,196) NASCAR event management fees (133,682) (128,254) Other direct expenses (19,541) (18,513) General and administrative (285,166) (194,120) Total expenses $(542,692) $(443,083) Income (loss) from continuing operations $ (46,229) $ 41,226 Note: General & administrative expenses for Year 2 include impairment of goodwill of $98,868. The impairment of goodwill is discussed in Chapter 7. ( Previous Next ) Income (loss) from continuing operations $ (46,229) $ 41,226 Note: General & administrative expenses for Year 2 include impairment of goodwill of $98,868. The impairment of goodwill is discussed in Chapter 7. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentage answers to one decimal place. Speedway Motorsports, Inc. Comparative Income Statement (in thousands of dollars) For the Years Ended Year 2 and Year 1 Year 2 amount Year 2 percent Year 1 amount '6 {ll '1 ,_. "U 9; n m :1 ,., Revenues: Admissions $100,694 % $100,798 % Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenue $495,463 "/0 $484,309 % Expenses and other: Direct expense of events $(104,303) $(102,196) (128,254) (18,513) (194,120) NASCAR event management fees (133,682) Other direct expenses (19,541) General and administrative (235,156) a a\\ o c\\ Total expenses $542,592) $(443i033) o a\\ o c\\ Income (loss) from continuing operations $(461229) $41,226 "mapaaglapaaa "mapaaglapaaa b. What conclusion can be drawn from the analysis regarding the change in income? CommonSized Income Statement Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics industry are as follows. Dawg Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages. Dawg Electronics Electronics Industry Company Average Sales $ 3,750,000 100 % Cost of goods sold (2,062,500) (61.0) Gross profit $1,687,500 39.0 % Selling expenses $(1,125,000) (23.0) % Administrative expenses (262,500) (10.0) Total operating expenses $(1,387,500) (33.0) % Operating income $300,000 6.0 % Other revenue and expense: Other revenue 15,000 3.0 Other expense $(3,750) (1.0) Income before income tax $ 311,250 8.0 % Income tax expense (93,750) (2.5) Net income $217,500 5.5 % a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round Net income , - % a. Prepare a commonsized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 % 100.0% Cost of goods sold (2,062,500) % (61-0)/ Gross profit $1,687,500 % 39.0% Selling expenses $(1,125,000) "/0 (23.0)%