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 YearRevenues: Admissions$90,639 $100,694 Event-related revenue136,900 146,980 NASCAR broadcasting revenue224,227 217,469 Other operating revenue60,390 31,320 Total revenues$512,156 $496,463 Expenses and other: Direct expense of events$(102,786) $(104,303) NASCAR event management fees(137,727) (133,682) Other direct expenses(43,784) (19,541) General and administrative(166,663) (285,166) Total expenses and other$(450,960) $(542,692) Income from continuing operations$61,196 $(46,229) 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%).

Vertical income statement has been made.

Answered: The following comparative income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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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 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
	Event-related revenue	136,900			146,980
	NASCAR broadcasting revenue	224,227			217,469
	Other operating revenue	60,390			31,320
		Total revenues	$512,156			$496,463
Expenses and other:
	Direct expense of events	$(102,786)			$(104,303)
	NASCAR event management fees	(137,727)			(133,682)
	Other direct expenses	(43,784)			(19,541)
	General and administrative	(166,663)			(285,166)
		Total expenses and other	$(450,960)			$(542,692)
Income from continuing operations	$61,196			$(46,229)

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%).

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