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. (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			(43,784)			(19,541)
	General and administrative			(166,663)			(285,166)
		Total expenses and other		$(450,960)			$(542,692)
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. (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	$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	(43,784)		(19,541)
General and administrative	(166,663)		(285,166)
Total expenses and other	$(450,960)		$(542,692)
Income from continuing operations	$61,196	%	$(46,229)

Answer 1

--Note: Enter % as positive, if required

	Current Year		Prior Year
Current Year	Amount	Percent	Amount	Percent
Amount
Revenues:
Admissions	$90,639	17.7%	$100,694	20.3%
Event-related revenue	$136,900	26.7%	$146,980	29.6%
NASCAR broadcasting revenue	$224,227	43.8%	$217,469	43.8%
Other operating revenue	$60,390	11.8%	$31,320	6.3%
Total revenues	$512,156	100.0%	$496,463	100.0%
Expenses and other:		0.0%		0.0%
Direct expense of events	($102,786)	-20.1%	($104,303)	-21.0%
NASCAR event management fees	($137,727)	-26.9%	($133,682)	-26.9%
Other direct expenses	($43,784)	-8.5%	($19,541)	-3.9%
General and administrative	($166,663)	-32.5%	($285,166)	-57.4%
Total expenses and other	($450,960)	-88.1%	($542,692)	-109.3%
Income from continuing operations	$61,196	11.9%	($46,229)	-9.3%