Question

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			$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 revenue		$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			(285,166)			(194,120)
		Total expenses		$(542,692)			$(443,083)
			Income (loss) from continuing operations	$ (46,229)			$ 41,226

Note: General & administrative expenses for Year 2 include impairment of goodwill of $98,868. The impairment of goodwill is discussed in Chapter 7.

a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues.
Round percentage answers to one decimal place.

Speedway Motorsports, Inc.
Comparative Income Statement (in thousands of dollars)
For the Years Ended Year 2 and Year 1
	Year 2 amount	Year 2 percent	Year 1 amount	Year 1 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 revenue	$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	(285,166)		(194,120)
Total expenses	$(542,692)	%	$(443,083)	%
Income (loss) from continuing operations	$(46,229)	%	$41,226	%

Answer 1