Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Bristol, Charlotte, Texas, and Las Vegas Motor Speedways. Year 2 Year 1 Revenues: Admissions $181,764 $179,975 Event-related revenue 192,780 173,075 NASCAR broadcasting revenue 199,512 175,375 Other operating revenue 37,944 46,575 Total revenue $612,000 $575,000 Expenses and other: Direct expense of events $102,816 $101,200 NASCAR purse and sanction fees 115,668 102,925 Other direct expenses 125,460 112,125 General and administrative 86,292 79,350 Total expenses $430,236 $395,600 Income (loss) from continuing operations $181,764 $179,400 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $43,146. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $181,764 % $179,975 % Event-related revenue 192,780 % 173,075 % NASCAR broadcasting revenue 199,512 % 175,375 % Other operating revenue 37,944 % 46,575 % Total revenue $612,000 % $575,000 % Expenses and other: Direct expense of events $102,816 % $101,200 % NASCAR purse and sanction fees 115,668 % 102,925 % Other direct expenses 125,460 % 112,125 % General and administrative 86,292 % 79,350 % Total expenses $430,236 % $395,600 % Operating income (loss) $181,764 % $179,400 % b. What conclusion can be drawn from the analysis regarding the change in income?

Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Bristol, Charlotte, Texas, and Las Vegas Motor Speedways. Year 2 Year 1 Revenues: Admissions $181,764 $179,975 Event-related revenue 192,780 173,075 NASCAR broadcasting revenue 199,512 175,375 Other operating revenue 37,944 46,575 Total revenue $612,000 $575,000 Expenses and other: Direct expense of events $102,816 $101,200 NASCAR purse and sanction fees 115,668 102,925 Other direct expenses 125,460 112,125 General and administrative 86,292 79,350 Total expenses $430,236 $395,600 Income (loss) from continuing operations $181,764 $179,400 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $43,146. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $181,764 % $179,975 % Event-related revenue 192,780 % 173,075 % NASCAR broadcasting revenue 199,512 % 175,375 % Other operating revenue 37,944 % 46,575 % Total revenue $612,000 % $575,000 % Expenses and other: Direct expense of events $102,816 % $101,200 % NASCAR purse and sanction fees 115,668 % 102,925 % Other direct expenses 125,460 % 112,125 % General and administrative 86,292 % 79,350 % Total expenses $430,236 % $395,600 % Operating income (loss) $181,764 % $179,400 % b. What conclusion can be drawn from the analysis regarding the change in income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Vertical Analysis of Income Statement

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

				Year 2		Year 1
Revenues:
	Admissions	$181,764			$179,975
	Event-related revenue	192,780			173,075
	NASCAR broadcasting revenue	199,512			175,375
	Other operating revenue	37,944			46,575
		Total revenue	$612,000			$575,000

Expenses and other:
	Direct expense of events	$102,816			$101,200
	NASCAR purse and sanction fees	115,668			102,925
	Other direct expenses	125,460			112,125
	General and administrative	86,292			79,350
		Total expenses	$430,236			$395,600
			Income (loss) from continuing operations	$181,764			$179,400

Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $43,146.

a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers.

Speedway Motorsports, Inc
Comparative Income Statement (in thousands of dollars)
For the Years Ended December 31, Year 2 and Year 1
	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
Revenues:
Admissions	$181,764	%	$179,975	%
Event-related revenue	192,780	%	173,075	%
NASCAR broadcasting revenue	199,512	%	175,375	%
Other operating revenue	37,944	%	46,575	%
Total revenue	$612,000	%	$575,000	%
Expenses and other:
Direct expense of events	$102,816	%	$101,200	%
NASCAR purse and sanction fees	115,668	%	102,925	%
Other direct expenses	125,460	%	112,125	%
General and administrative	86,292	%	79,350	%
Total expenses	$430,236	%	$395,600	%
Operating income (loss)	$181,764	%	$179,400	%

b. What conclusion can be drawn from the analysis regarding the change in income?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.