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 $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenues $496,463 $484,309 Expenses and other: Direct expense of events $104,303 $102,196 NASCAR event management fees 133,682 128,254 Other direct expenses 19,541 18,513 General and administrative 177,926 194,120 Total expenses and other $435,452 $443,083 Income from continuing operations $61,011 $41,226 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 $100,694 % $100,798 % Event-related revenue 146,980 % 146,849 % NASCAR broadcasting revenue 217,469 % 207,369 % Other operating revenue 31,320 % 29,293 % Total revenues $496,463 % $484,309 % Expenses and other: Direct expense of events $104,303 % $102,196 % NASCAR event management fees 133,682 % 128,254 % Other direct expenses 19,541 % 18,513 % General and administrative 177,926 % 194,120 % Total expenses and other $435,452 % $443,083 % Income from continuing operations $61,011 % $41,226 %

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 $100,694 $100,798 Event-related revenue 146,980 146,849 NASCAR broadcasting revenue 217,469 207,369 Other operating revenue 31,320 29,293 Total revenues $496,463 $484,309 Expenses and other: Direct expense of events $104,303 $102,196 NASCAR event management fees 133,682 128,254 Other direct expenses 19,541 18,513 General and administrative 177,926 194,120 Total expenses and other $435,452 $443,083 Income from continuing operations $61,011 $41,226 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 $100,694 % $100,798 % Event-related revenue 146,980 % 146,849 % NASCAR broadcasting revenue 217,469 % 207,369 % Other operating revenue 31,320 % 29,293 % Total revenues $496,463 % $484,309 % Expenses and other: Direct expense of events $104,303 % $102,196 % NASCAR event management fees 133,682 % 128,254 % Other direct expenses 19,541 % 18,513 % General and administrative 177,926 % 194,120 % Total expenses and other $435,452 % $443,083 % Income from continuing operations $61,011 % $41,226 %

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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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	$100,694			$100,798
	Event-related revenue	146,980			146,849
	NASCAR broadcasting revenue	217,469			207,369
	Other operating revenue	31,320			29,293
		Total revenues	$496,463			$484,309

Expenses and other:
	Direct expense of events	$104,303			$102,196
	NASCAR event management fees	133,682			128,254
	Other direct expenses	19,541			18,513
	General and administrative	177,926			194,120
		Total expenses and other	$435,452			$443,083
Income from continuing operations	$61,011			$41,226

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	$100,694	%	$100,798	%
Event-related revenue	146,980	%	146,849	%
NASCAR broadcasting revenue	217,469	%	207,369	%
Other operating revenue	31,320	%	29,293	%
Total revenues	$496,463	%	$484,309	%
Expenses and other:
Direct expense of events	$104,303	%	$102,196	%
NASCAR event management fees	133,682	%	128,254	%
Other direct expenses	19,541	%	18,513	%
General and administrative	177,926	%	194,120	%
Total expenses and other	$435,452	%	$443,083	%
Income from continuing operations	$61,011	%	$41,226	%

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