The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. 1 Current YearPrevious Year2Revenues: 3Admissions$116,034.00$130,239.004Event-related revenue151,562.00163,621.005NASCAR broadcasting revenue192,662.00185,394.006Other operating revenue29,902.0026,951.007Total revenue$490,160.00$506,205.008Expenses and other: 9Direct expense of events$101,402.00$106,204.0010NASCAR purse and sanction fees122,950.00120,146.0011Other direct expenses18,908.0020,352.0012General and administrative183,215.00241,223.0013Total expenses and other$426,475.00$487,925.0014Income from continuing operations$63,685.00$18,280.00 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. Rounding instructions (Note: Due to rounding, amounts may not total 100%).B.Comment on the significant changes.

Vertical form for financial statements is widely used to get a…

Answered: The following comparative income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.

1		Current Year	Previous Year
2	Revenues:
3	Admissions	$116,034.00	$130,239.00
4	Event-related revenue	151,562.00	163,621.00
5	NASCAR broadcasting revenue	192,662.00	185,394.00
6	Other operating revenue	29,902.00	26,951.00
7	Total revenue	$490,160.00	$506,205.00
8	Expenses and other:
9	Direct expense of events	$101,402.00	$106,204.00
10	NASCAR purse and sanction fees	122,950.00	120,146.00
11	Other direct expenses	18,908.00	20,352.00
12	General and administrative	183,215.00	241,223.00
13	Total expenses and other	$426,475.00	$487,925.00
14	Income from continuing operations	$63,685.00	$18,280.00

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. Rounding instructions (Note: Due to rounding, amounts may not total 100%).
B.	Comment on the significant changes.

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