Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 16, Problem 2E
The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.
- 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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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.
Please see the attachment for details:
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.
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.
Revenues:
Admissions
Event-related revenue
NASCAR broadcasting revenue
Other operating revenue
Total revenue
Expenses and other:
Direct expense of events
NASCAR event management fees
Other direct operating expenses
General and administrative
Total expenses and other
Income from continuing operations
Current Year
$95,918
145,082
181,232
59,768
$482,000
$96,882
124,838
26,028
182,196
$429,944
$52,056
Previous Year
$107,967
151,351
170,578
63,104
$493,000
$103,530
124,236
19,227
216,920
$463,913
$29,087
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…
Chapter 16 Solutions
Managerial Accounting
Ch. 16 - Prob. 1DQCh. 16 - What is the advantage of using comparative...Ch. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - What do the following data, taken from a...Ch. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - The dividend yield of Suburban Propane Partners,...Ch. 16 - Prob. 10DQ
Ch. 16 - Prob. 1BECh. 16 - Prob. 2BECh. 16 - The following items are reported on a companys...Ch. 16 - Prob. 4BECh. 16 - Prob. 5BECh. 16 - Prob. 6BECh. 16 - Prob. 7BECh. 16 - Prob. 8BECh. 16 - Prob. 9BECh. 16 - Prob. 10BECh. 16 - Prob. 11BECh. 16 - Prob. 1ECh. 16 - The following comparative income statement (in...Ch. 16 - Prob. 3ECh. 16 - Prob. 4ECh. 16 - Prob. 5ECh. 16 - The following data were taken from the balance...Ch. 16 - PepsiCo, Inc. (PEP), the parent company of...Ch. 16 - Current position analysis The bond indenture for...Ch. 16 - Prob. 9ECh. 16 - Accounts receivable analysis Xavier Stores Company...Ch. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Ratio of liabilities to stockholders equity and...Ch. 16 - Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are...Ch. 16 - Recent balance sheet information for two companies...Ch. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25ECh. 16 - Comprehensive income Anson Industries, Inc.,...Ch. 16 - Prob. 1PACh. 16 - Prob. 2PACh. 16 - Prob. 3PACh. 16 - Measures of liquidity, solvency, and profitability...Ch. 16 - Prob. 5PACh. 16 - Prob. 1PBCh. 16 - Prob. 2PBCh. 16 - Prob. 3PBCh. 16 - Prob. 4PBCh. 16 - Prob. 5PBCh. 16 - Prob. 1MADCh. 16 - Prob. 2MADCh. 16 - Deere Company (DE) manufactures and distributes...Ch. 16 - Marriott International, Inc. (MAR), and Hyatt...Ch. 16 - Prob. 1TIFCh. 16 - Real-world annual report The financial statements...Ch. 16 - Prob. 3TIF
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- The following comparative income statement (in thousands of dollars) for the 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 $107,576 $121,032 Event-related revenue 138,040 142,188 NASCAR broadcasting revenue 175,168 166,296 Other operating revenue 55,216 62,484 Total revenue $476,000 $492,000 Expenses and other: Direct expense of events $98,056 $97,908 NASCAR purse and sanction fees 114,240 123,492 Other direct expenses 23,324 15,252 General and administrative 180,880 226,320 Total expenses and other $416,500 $462,972 Income from continuing operations $59,500 $29,028 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.…arrow_forwardThe following comparative income statement (in thousands of dollars) for the 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. 1 Current Year Previous Year 2 Revenues: 3 Admissions $116,034.00 $130,239.00 4 Event-related revenue 151,562.00 163,621.00 5 NASCAR broadcasting revenue 192,662.00 185,394.00 6 Other operating revenue 29,902.00 26,951.00 7 Total revenue $490,160.00 $506,205.00 8 Expenses and other: 9 Direct expense of events $101,402.00 $106,204.00 10 NASCAR purse and sanction fees 122,950.00 120,146.00 11 Other direct expenses 18,908.00 20,352.00 12 General and administrative 183,215.00 241,223.00 13 Total expenses and other $426,475.00 $487,925.00 14 Income from continuing…arrow_forwardThe 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 or several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways. Revenues: Admissions Event-related revenue NASCAR broadcasting revenue Other operating revenue Total revenue Expenses and other: Direct expense of events NASCAR event management fees Other direct operating expenses General and administrative Total expenses and other Income from continuing operations Current Year Revenues: Admissions Event-related revenue NASCAR broadcasting revenue Other operating revenue Total revenue Expenses and other: Direct expense of events NASCAR event management fees Other direct operating expenses General and administrative Total expenses and other Income from continuing operations $97,887 149,996 187,495 51,622 $487,000 $95,452 117,854 18,019 202,105 $433,430 $53,570 Previous Year $111,384…arrow_forward
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