Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Textbook Question
Chapter 14, Problem 14.2EX
a Current fiscal year income from continuing operations, 11,9% of revenues
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 Speedway Motors ports, 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 | (43,764) | (19,541) |
| General and administrative | (166,663) | (288,166) |
| Total expenses and other | $(450,960) | $(542392) |
| 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. Round percentages to one decimal place.
b. 
Comment on the significant changes
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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 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…
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 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
Question…
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 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
$116,034
$130,239
Event-related revenue
151,562
163,621
NASCAR broadcasting revenue
192,662
185,394
Other operating revenue
29,902
26,951
Total revenues
$490,160
$506,205
Expenses and other:
Direct expense of events
$101,402
$106,204
NASCAR purse and sanction fees
122,950
120,146
Other direct expenses
18,908
20,352
General and administrative
183,215
241,223
Total expenses and other
$426,475
$487,925
Income from continuing operations
$63,685
$18,280
a. Prepare a…
Chapter 14 Solutions
Corporate Financial Accounting
Ch. 14 - Briefly explain the difference between liquidity,...Ch. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQCh. 14 - How would the current and quick ratios of a...Ch. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - A. How does the rate earned on total assets differ...Ch. 14 - Kroger, a grocery store, recently had a...Ch. 14 - The dividend yield of Suburban Propane Partners,...Ch. 14 - Prob. 10DQ
Ch. 14 - Horizontal analysis The comparative accounts...Ch. 14 - Vertical analysis Income statement information for...Ch. 14 - Current position analysis The following items are...Ch. 14 - Accounts receivable analysis A company reports the...Ch. 14 - Inventory analysis A company reports the...Ch. 14 - Prob. 14.6BECh. 14 - To determine: Times interest earned ratio Given...Ch. 14 - Asset turnover A company reports the following:...Ch. 14 - Return on total assets A company reports the...Ch. 14 - Common stockholders profitability analysis A...Ch. 14 - Earnings per share and price-earnings ratio A...Ch. 14 - Vertical analysis of income statement Revenue and...Ch. 14 - a Current fiscal year income from continuing...Ch. 14 - Common-sized income statement Revenue and expense...Ch. 14 - Vertical analysis of balance sheet Balance shed...Ch. 14 - a. Net income increase, 78,0% Horizontal analysis...Ch. 14 - a. (1) Current year working capital. 1,090,000...Ch. 14 - Prob. 14.7EXCh. 14 - Current position analysis The bond indenture for...Ch. 14 - Accounts receivable analysis The following data...Ch. 14 - Accounts receivable analysis Xavier Stores Company...Ch. 14 - Inventory analysis The following data were...Ch. 14 - Inventory analysis QT, Inc. and Elppa Computers,...Ch. 14 - Ratio of liabilities to stockholders' equity and...Ch. 14 - Prob. 14.14EXCh. 14 - a. Mondelez International Inc., 1.4 Ratio of...Ch. 14 - a. YRC, 2.6 Asset turnover Three major segments of...Ch. 14 - Profitability ratios The following selected data...Ch. 14 - a. Year 3 return on total assets. 6.8%...Ch. 14 - Six measures of solvency or profitability The...Ch. 14 - Five measures of solvency or profitability The...Ch. 14 - Earnings per share, price-earnings ratio, dividend...Ch. 14 - a. Alphabet, 37.9 Price-earnings ratio; dividend...Ch. 14 - Earnings per share, discontinued operations The...Ch. 14 - Prob. 14.24EXCh. 14 - Unusual items Explain whether Colston Company...Ch. 14 - Comprehensive Income Anson Industries, Inc....Ch. 14 - Horizontal analysis of income statement For 20V2,...Ch. 14 - Prob. 14.2APRCh. 14 - Prob. 14.3APRCh. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Solvency and profitability trend analysis Addai...Ch. 14 - Horizontal analysis of income statement For 20Y2,...Ch. 14 - Prob. 14.2BPRCh. 14 - Effect of transactions on current position...Ch. 14 - Measures of liquidity, solvency and profitability...Ch. 14 - Solvency and profitability trend analysis Crosby...Ch. 14 - Analyze and compare Amazon.com, Best Buy, and...Ch. 14 - Prob. 14.2MADCh. 14 - Analyze Deere Company Deere Company (DE)...Ch. 14 - Analyze and compare Marriott and Hyatt Marriott...Ch. 14 - Prob. 14.1TIFCh. 14 - Prob. 14.3TIF
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