The following comparative income statement (in thousands of dollars) for 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. Current Year Previous Year Revenues: Admissions $78,332 $86,949 Event-related revenue 140,210 133,632 NASCAR broadcasting revenue 216,592 209,155 Other operating revenue 26,780 28,622 Total revenues $461,914 $458,358 Expenses and other: Direct expense of events $101,876 $98,973 NASCAR event management fees 123,212 119,101 Other direct operating expenses 18,502 18,782 General and administrative 164,949 177,132 Total expenses and other $408,539 $413,988 Income from continuing operations $53,375 $44,370 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. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place. Speedway 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 $78,332 fill in the blank 42de40ffffa204e_1% $86,949 fill in the blank 42de40ffffa204e_2% Event-related revenue 140,210 fill in the blank 42de40ffffa204e_3% 133,632 fill in the blank 42de40ffffa204e_4% NASCAR broadcasting revenue 216,592 fill in the blank 42de40ffffa204e_5% 209,155 fill in the blank 42de40ffffa204e_6% Other operating revenue 26,780 fill in the blank 42de40ffffa204e_7% 28,622 fill in the blank 42de40ffffa204e_8% Total revenues $461,914 fill in the blank 42de40ffffa204e_9% $458,358 fill in the blank 42de40ffffa204e_10% Expenses and other: Direct expense of events $101,876 fill in the blank 42de40ffffa204e_11% $98,973 fill in the blank 42de40ffffa204e_12% NASCAR event management fees 123,212 fill in the blank 42de40ffffa204e_13% 119,101 fill in the blank 42de40ffffa204e_14% Other direct operating expenses 18,502 fill in the blank 42de40ffffa204e_15% 18,782 fill in the blank 42de40ffffa204e_16% General and administrative 164,949 fill in the blank 42de40ffffa204e_17% 177,132 fill in the blank 42de40ffffa204e_18% Total expenses and other $408,539 fill in the blank 42de40ffffa204e_19% $413,988 fill in the blank 42de40ffffa204e_20% Income from continuing operations $53,375 fill in the blank 42de40ffffa204e_21% $44,370 fill in the blank 42de40ffffa204e_22% b. Overall revenue some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue by 1.3% of total revenue, while event-related revenue by 1.2% of total revenue. NASCAR event management fees, by 0.7% of total revenue. General and administrative expenses, however, by over 2.9% of total revenue. It appears that has helped the company significantly improve its income from continuing operations.

The following comparative income statement (in thousands of dollars) for 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. Current Year Previous Year Revenues: Admissions $78,332 $86,949 Event-related revenue 140,210 133,632 NASCAR broadcasting revenue 216,592 209,155 Other operating revenue 26,780 28,622 Total revenues $461,914 $458,358 Expenses and other: Direct expense of events $101,876 $98,973 NASCAR event management fees 123,212 119,101 Other direct operating expenses 18,502 18,782 General and administrative 164,949 177,132 Total expenses and other $408,539 $413,988 Income from continuing operations $53,375 $44,370 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. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place. Speedway 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 $78,332 fill in the blank 42de40ffffa204e_1% $86,949 fill in the blank 42de40ffffa204e_2% Event-related revenue 140,210 fill in the blank 42de40ffffa204e_3% 133,632 fill in the blank 42de40ffffa204e_4% NASCAR broadcasting revenue 216,592 fill in the blank 42de40ffffa204e_5% 209,155 fill in the blank 42de40ffffa204e_6% Other operating revenue 26,780 fill in the blank 42de40ffffa204e_7% 28,622 fill in the blank 42de40ffffa204e_8% Total revenues $461,914 fill in the blank 42de40ffffa204e_9% $458,358 fill in the blank 42de40ffffa204e_10% Expenses and other: Direct expense of events $101,876 fill in the blank 42de40ffffa204e_11% $98,973 fill in the blank 42de40ffffa204e_12% NASCAR event management fees 123,212 fill in the blank 42de40ffffa204e_13% 119,101 fill in the blank 42de40ffffa204e_14% Other direct operating expenses 18,502 fill in the blank 42de40ffffa204e_15% 18,782 fill in the blank 42de40ffffa204e_16% General and administrative 164,949 fill in the blank 42de40ffffa204e_17% 177,132 fill in the blank 42de40ffffa204e_18% Total expenses and other $408,539 fill in the blank 42de40ffffa204e_19% $413,988 fill in the blank 42de40ffffa204e_20% Income from continuing operations $53,375 fill in the blank 42de40ffffa204e_21% $44,370 fill in the blank 42de40ffffa204e_22% b. Overall revenue some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue by 1.3% of total revenue, while event-related revenue by 1.2% of total revenue. NASCAR event management fees, by 0.7% of total revenue. General and administrative expenses, however, by over 2.9% of total revenue. It appears that has helped the company significantly improve its income from continuing operations.

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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Question

The following comparative income statement (in thousands of dollars) for 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.

				Current Year		Previous Year
Revenues:
	Admissions	$78,332			$86,949
	Event-related revenue	140,210			133,632
	NASCAR broadcasting revenue	216,592			209,155
	Other operating revenue	26,780			28,622
		Total revenues	$461,914			$458,358

Expenses and other:
	Direct expense of events	$101,876			$98,973
	NASCAR event management fees	123,212			119,101
	Other direct operating expenses	18,502			18,782
	General and administrative	164,949			177,132
		Total expenses and other	$408,539			$413,988
Income from continuing operations	$53,375			$44,370

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. (Note: Due to rounding, amounts may not total 100%).

Round your percentages to one decimal place.

Speedway 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	$78,332	fill in the blank 42de40ffffa204e_1%	$86,949	fill in the blank 42de40ffffa204e_2%
Event-related revenue	140,210	fill in the blank 42de40ffffa204e_3%	133,632	fill in the blank 42de40ffffa204e_4%
NASCAR broadcasting revenue	216,592	fill in the blank 42de40ffffa204e_5%	209,155	fill in the blank 42de40ffffa204e_6%
Other operating revenue	26,780	fill in the blank 42de40ffffa204e_7%	28,622	fill in the blank 42de40ffffa204e_8%
Total revenues	$461,914	fill in the blank 42de40ffffa204e_9%	$458,358	fill in the blank 42de40ffffa204e_10%
Expenses and other:
Direct expense of events	$101,876	fill in the blank 42de40ffffa204e_11%	$98,973	fill in the blank 42de40ffffa204e_12%
NASCAR event management fees	123,212	fill in the blank 42de40ffffa204e_13%	119,101	fill in the blank 42de40ffffa204e_14%
Other direct operating expenses	18,502	fill in the blank 42de40ffffa204e_15%	18,782	fill in the blank 42de40ffffa204e_16%
General and administrative	164,949	fill in the blank 42de40ffffa204e_17%	177,132	fill in the blank 42de40ffffa204e_18%
Total expenses and other	$408,539	fill in the blank 42de40ffffa204e_19%	$413,988	fill in the blank 42de40ffffa204e_20%
Income from continuing operations	$53,375	fill in the blank 42de40ffffa204e_21%	$44,370	fill in the blank 42de40ffffa204e_22%

b. Overall revenue

some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue

by 1.3% of total revenue, while event-related revenue

by 1.2% of total revenue. NASCAR event management fees,

by 0.7% of total revenue. General and administrative expenses, however,

by over 2.9% of total revenue. It appears that

has helped the company significantly improve its income from continuing operations.

Expert Solution

Answer to Question (a):

Speedway Motorsports Inc
Comparative income statement ($ in thousand)
For the Years Ended December 31
Particulars	Current year	Current year	Previous year	Previous year
	Amount	Percent	Amount	Percent

Revenues
Admission	$ 78,332.00	17.0%	$ 86,949.00	19.0%
Event-related revenues	$ 1,40,210.00	30.4%	$ 1,33,632.00	29.2%
NASCAR Broadcasting revenue	$ 2,16,592.00	46.9%	$ 2,09,155.00	45.6%
Other operating revenue	$ 26,780.00	5.8%	$ 28,622.00	6.2%
Total revenues	$ 4,61,914.00	100.0%	$ 4,58,358.00	100.0%
Expenses and other:
Direct expenses of events	$ 1,01,876.00	22.1%	$ 98,973.00	21.6%
NASCAR event management fees	$ 1,23,212.00	26.7%	$ 1,19,101.00	26.0%
Other Direct operating expenses	$ 18,502.00	4.0%	$ 18,782.00	4.1%
General and administrative	$ 1,64,949.00	35.7%	$ 1,77,132.00	38.6%
Total expenses and other	$ 4,08,539.00	88.4%	$ 4,13,988.00	90.3%
Income from continuing operations	$ 53,375.00	11.6%	$ 44,370.00	9.7%

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