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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 Calvin Motorsports, Inc., owner and operator of several major moto speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $93,798 $106,926 Event-related revenue 145,800 153,612 NASCAR broadcasting revenue 181,764 172,688 Other operating revenue 64,638 68,774 Total revenue $486,000 $502,000 Expenses and other: Direct expense of events $95,256 $98,392 NASCAR purse and sanction fees 118,584 120,982 Other direct expenses 25,272 23,594 General and administrative 195,372 236,442 Total expenses and other $434,484 $479,410 Income from continuing operations $51,516 $22,590 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.

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 moto speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Current Year Previous Year Revenues: Admissions $93,798 $106,926 Event-related revenue 145,800 153,612 NASCAR broadcasting revenue 181,764 172,688 Other operating revenue 64,638 68,774 Total revenue $486,000 $502,000 Expenses and other: Direct expense of events $95,256 $98,392 NASCAR purse and sanction fees 118,584 120,982 Other direct expenses 25,272 23,594 General and administrative 195,372 236,442 Total expenses and other $434,484 $479,410 Income from continuing operations $51,516 $22,590 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.

FINANCIAL ACCOUNTING
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 Calvin Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. **Comparative Income Statement (in thousands of dollars)** | Revenues | Current Year | Previous Year | |-------------------------------|--------------|---------------| | Admissions | $93,798 | $106,926 | | Event-related revenue | $145,800 | $153,612 | | NASCAR broadcasting revenue | $181,764 | $172,688 | | Other operating revenue | $64,638 | $68,774 | | **Total revenue** | **$486,000** | **$502,000** | **Expenses and Other:** | Expenses and Other | Current Year | Previous Year | |---------------------------------------|--------------|---------------| | Direct expense of events | $95,256 | $98,392 | | NASCAR purse and sanction fees | $118,584 | $120,982 | | Other direct expenses | $25,272 | $23,594 | | General and administrative | $195,372 | $236,442 | | **Total expenses and other** | **$434,484** | **$479,410** | | **Income from continuing operations** | **$51,516** | **$22,590** | Instructions: 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.
Transcribed Image Text: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. **Comparative Income Statement (in thousands of dollars)** | Revenues | Current Year | Previous Year | |-------------------------------|--------------|---------------| | Admissions | $93,798 | $106,926 | | Event-related revenue | $145,800 | $153,612 | | NASCAR broadcasting revenue | $181,764 | $172,688 | | Other operating revenue | $64,638 | $68,774 | | **Total revenue** | **$486,000** | **$502,000** | **Expenses and Other:** | Expenses and Other | Current Year | Previous Year | |---------------------------------------|--------------|---------------| | Direct expense of events | $95,256 | $98,392 | | NASCAR purse and sanction fees | $118,584 | $120,982 | | Other direct expenses | $25,272 | $23,594 | | General and administrative | $195,372 | $236,442 | | **Total expenses and other** | **$434,484** | **$479,410** | | **Income from continuing operations** | **$51,516** | **$22,590** | Instructions: 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** | **Category** | **Current Year Amount** | **Current Year Percent** | **Prior Year Amount** | **Prior Year Percent** | |-------------------------------------------|-------------------------|--------------------------|------------------------|-------------------------| | **Revenues:** | | | | | | Admissions | $93,798 | | $106,926 | | | Event-related revenue | $145,800 | | $153,612 | | | NASCAR broadcasting revenue | $181,764 | | $172,688 | | | Other operating revenue | $64,638 | | $68,774 | | | **Total revenue** | **$486,000** | | **$502,000** | | | **Expenses and other:** | | | | | | Direct expense of events | $95,256 | | $98,392 | | | NASCAR purse and sanction fees | $118,584 | | $120,982 | | | Other direct expenses | $25,272 | | $23,594 | | | General and administrative | $195,372 | | $236,442 | | | **Total expenses and other** | **$434,484** | | **$479,410** | | | **Income from continuing operations** | **$51,516** | | **$22,590** | | --- **Analysis:** 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 **decrease in general and administrative expenses**. --- **Graphical and Diagrammatic Analysis:** The table breaks down the financial performance of Calvin Motorsports, Inc. over two years. The primary components are revenue and expenses, categorized
Transcribed Image Text:**Calvin Motorsports, Inc.** **Comparative Income Statement (in thousands of dollars)** **For the Years Ended December 31** | **Category** | **Current Year Amount** | **Current Year Percent** | **Prior Year Amount** | **Prior Year Percent** | |-------------------------------------------|-------------------------|--------------------------|------------------------|-------------------------| | **Revenues:** | | | | | | Admissions | $93,798 | | $106,926 | | | Event-related revenue | $145,800 | | $153,612 | | | NASCAR broadcasting revenue | $181,764 | | $172,688 | | | Other operating revenue | $64,638 | | $68,774 | | | **Total revenue** | **$486,000** | | **$502,000** | | | **Expenses and other:** | | | | | | Direct expense of events | $95,256 | | $98,392 | | | NASCAR purse and sanction fees | $118,584 | | $120,982 | | | Other direct expenses | $25,272 | | $23,594 | | | General and administrative | $195,372 | | $236,442 | | | **Total expenses and other** | **$434,484** | | **$479,410** | | | **Income from continuing operations** | **$51,516** | | **$22,590** | | --- **Analysis:** 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 **decrease in general and administrative expenses**. --- **Graphical and Diagrammatic Analysis:** The table breaks down the financial performance of Calvin Motorsports, Inc. over two years. The primary components are revenue and expenses, categorized
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