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 opera- tor 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 $ 496,463 Total revenues $ 512,156 Expenses and other: Direct expense of events NASCAR event management fees $(102,786) $(104,303) (137,727) (133,682) Other direct expenses (43,784) (19,541) (285,166) $(542,692) $ (46,229) General and administrative (166,663) Total expenses and other Income from continuing operations $(450,960) $ 61,196 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.
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 opera- tor 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 $ 496,463 Total revenues $ 512,156 Expenses and other: Direct expense of events NASCAR event management fees $(102,786) $(104,303) (137,727) (133,682) Other direct expenses (43,784) (19,541) (285,166) $(542,692) $ (46,229) General and administrative (166,663) Total expenses and other Income from continuing operations $(450,960) $ 61,196 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.
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.2EX: a Current fiscal year income from continuing operations, 11,9% of revenues Vertical analysis of...
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