Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for 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. Current Year Previous Year Revenues: Admissions $103,305 $116,500 Event-related revenue 144,045 135,000 NASCAR broadcasting revenue 186,240 177,000 Other operating revenue 51,410 71,500 Total revenue $485,000 $500,000 Expenses and other: Direct expense of events $97,000 $102,500 NASCAR event management fees 122,220 123,000 Other direct operating expenses 20,855 27,000 General and administrative 195,455 216,000 Total expenses and other $435,530 $468,500 Income from continuing operations $49,470 $31,500 Question Content Area 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 Current Year Amount Current Year Percent Prior Year Amount Prior Year Percent Revenues: Admissions $103,305 fill in the blank 21f79cfc5fb9ff2_1% $116,500 fill in the blank 21f79cfc5fb9ff2_2% Event-related revenue 144,045 fill in the blank 21f79cfc5fb9ff2_3% 135,000 fill in the blank 21f79cfc5fb9ff2_4% NASCAR broadcasting revenue 186,240 fill in the blank 21f79cfc5fb9ff2_5% 177,000 fill in the blank 21f79cfc5fb9ff2_6% Other operating revenue 51,410 fill in the blank 21f79cfc5fb9ff2_7% 71,500 fill in the blank 21f79cfc5fb9ff2_8% Total revenue $485,000 fill in the blank 21f79cfc5fb9ff2_9% $500,000 fill in the blank 21f79cfc5fb9ff2_10% Expenses and other: Direct expense of events $97,000 fill in the blank 21f79cfc5fb9ff2_11% $102,500 fill in the blank 21f79cfc5fb9ff2_12% NASCAR event management fees 122,220 fill in the blank 21f79cfc5fb9ff2_13% 123,000 fill in the blank 21f79cfc5fb9ff2_14% Other direct operating expenses 20,855 fill in the blank 21f79cfc5fb9ff2_15% 27,000 fill in the blank 21f79cfc5fb9ff2_16% General and administrative 195,455 fill in the blank 21f79cfc5fb9ff2_17% 216,000 fill in the blank 21f79cfc5fb9ff2_18% Total expenses and other $435,530 fill in the blank 21f79cfc5fb9ff2_19% $468,500 fill in the blank 21f79cfc5fb9ff2_20% Income from continuing operations $49,470 fill in the blank 21f79cfc5fb9ff2_21% $31,500 fill in the blank 21f79cfc5fb9ff2_22%

Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for 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. Current Year Previous Year Revenues: Admissions $103,305 $116,500 Event-related revenue 144,045 135,000 NASCAR broadcasting revenue 186,240 177,000 Other operating revenue 51,410 71,500 Total revenue $485,000 $500,000 Expenses and other: Direct expense of events $97,000 $102,500 NASCAR event management fees 122,220 123,000 Other direct operating expenses 20,855 27,000 General and administrative 195,455 216,000 Total expenses and other $435,530 $468,500 Income from continuing operations $49,470 $31,500 Question Content Area 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 Current Year Amount Current Year Percent Prior Year Amount Prior Year Percent Revenues: Admissions $103,305 fill in the blank 21f79cfc5fb9ff2_1% $116,500 fill in the blank 21f79cfc5fb9ff2_2% Event-related revenue 144,045 fill in the blank 21f79cfc5fb9ff2_3% 135,000 fill in the blank 21f79cfc5fb9ff2_4% NASCAR broadcasting revenue 186,240 fill in the blank 21f79cfc5fb9ff2_5% 177,000 fill in the blank 21f79cfc5fb9ff2_6% Other operating revenue 51,410 fill in the blank 21f79cfc5fb9ff2_7% 71,500 fill in the blank 21f79cfc5fb9ff2_8% Total revenue $485,000 fill in the blank 21f79cfc5fb9ff2_9% $500,000 fill in the blank 21f79cfc5fb9ff2_10% Expenses and other: Direct expense of events $97,000 fill in the blank 21f79cfc5fb9ff2_11% $102,500 fill in the blank 21f79cfc5fb9ff2_12% NASCAR event management fees 122,220 fill in the blank 21f79cfc5fb9ff2_13% 123,000 fill in the blank 21f79cfc5fb9ff2_14% Other direct operating expenses 20,855 fill in the blank 21f79cfc5fb9ff2_15% 27,000 fill in the blank 21f79cfc5fb9ff2_16% General and administrative 195,455 fill in the blank 21f79cfc5fb9ff2_17% 216,000 fill in the blank 21f79cfc5fb9ff2_18% Total expenses and other $435,530 fill in the blank 21f79cfc5fb9ff2_19% $468,500 fill in the blank 21f79cfc5fb9ff2_20% Income from continuing operations $49,470 fill in the blank 21f79cfc5fb9ff2_21% $31,500 fill in the blank 21f79cfc5fb9ff2_22%

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 Content Area

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

	Current Year Amount	Current Year Percent	Prior Year Amount	Prior Year Percent
Revenues:
Admissions	$103,305	fill in the blank 21f79cfc5fb9ff2_1%	$116,500	fill in the blank 21f79cfc5fb9ff2_2%
Event-related revenue	144,045	fill in the blank 21f79cfc5fb9ff2_3%	135,000	fill in the blank 21f79cfc5fb9ff2_4%
NASCAR broadcasting revenue	186,240	fill in the blank 21f79cfc5fb9ff2_5%	177,000	fill in the blank 21f79cfc5fb9ff2_6%
Other operating revenue	51,410	fill in the blank 21f79cfc5fb9ff2_7%	71,500	fill in the blank 21f79cfc5fb9ff2_8%
Total revenue	$485,000	fill in the blank 21f79cfc5fb9ff2_9%	$500,000	fill in the blank 21f79cfc5fb9ff2_10%
Expenses and other:
Direct expense of events	$97,000	fill in the blank 21f79cfc5fb9ff2_11%	$102,500	fill in the blank 21f79cfc5fb9ff2_12%
NASCAR event management fees	122,220	fill in the blank 21f79cfc5fb9ff2_13%	123,000	fill in the blank 21f79cfc5fb9ff2_14%
Other direct operating expenses	20,855	fill in the blank 21f79cfc5fb9ff2_15%	27,000	fill in the blank 21f79cfc5fb9ff2_16%
General and administrative	195,455	fill in the blank 21f79cfc5fb9ff2_17%	216,000	fill in the blank 21f79cfc5fb9ff2_18%
Total expenses and other	$435,530	fill in the blank 21f79cfc5fb9ff2_19%	$468,500	fill in the blank 21f79cfc5fb9ff2_20%
Income from continuing operations	$49,470	fill in the blank 21f79cfc5fb9ff2_21%	$31,500	fill in the blank 21f79cfc5fb9ff2_22%

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				Current Year		Previous Year
Revenues:
	Admissions	$103,305			$116,500
	Event-related revenue	144,045			135,000
	NASCAR broadcasting revenue	186,240			177,000
	Other operating revenue	51,410			71,500
		Total revenue	$485,000			$500,000

Expenses and other:
	Direct expense of events	$97,000			$102,500
	NASCAR event management fees	122,220			123,000
	Other direct operating expenses	20,855			27,000
	General and administrative	195,455			216,000
		Total expenses and other	$435,530			$468,500
Income from continuing operations	$49,470			$31,500