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Vertical Analysis of Income Statement 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 $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: Direct expense of events $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Income (loss) from continuing operations $214,092 $207,774 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $41,003. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: expeore $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Operating income (loss) $214,092 % $207,774

Vertical Analysis of Income Statement 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 $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: Direct expense of events $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Income (loss) from continuing operations $214,092 $207,774 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $41,003. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: expeore $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Operating income (loss) $214,092 % $207,774

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2E: The following comparative income statement (in thousands of dollars) for two recent fiscal years was...
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Vertical Analysis of Income Statement 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 $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: Direct expense of events $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Income (loss) from continuing operations $214,092 $207,774 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $41,003. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $179,662 % $176,346 % Event-related revenue 189,678 % 168,780 % NASCAR broadcasting revenue 208,458 % 178,092 % Other operating revenue 48,202 % 58,782 % Total revenue $626,000 % $582,000 % Expenses and other: Direct expense of events $100 % $98,358 % NASCAR purse and sanction fees 111,428 % 98,358 Other direct expenses 117,688 % 103,014 % General and administrative 82,006 74,496 Total expenses $411,908 % $374,226 Operating income (loss) $214,092 % $207,774 %
Transcribed Image Text:Vertical Analysis of Income Statement 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 $179,662 $176,346 Event-related revenue 189,678 168,780 NASCAR broadcasting revenue 208,458 178,092 Other operating revenue 48,202 58,782 Total revenue $626,000 $582,000 Expenses and other: Direct expense of events $100,786 $98,358 NASCAR purse and sanction fees 111,428 98,358 Other direct expenses 117,688 103,014 General and administrative 82,006 74,496 Total expenses $411,908 $374,226 Income (loss) from continuing operations $214,092 $207,774 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $41,003. a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc Comparative Income Statement (in thousands of dollars) For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent Revenues: Admissions $179,662 % $176,346 % Event-related revenue 189,678 % 168,780 % NASCAR broadcasting revenue 208,458 % 178,092 % Other operating revenue 48,202 % 58,782 % Total revenue $626,000 % $582,000 % Expenses and other: Direct expense of events $100 % $98,358 % NASCAR purse and sanction fees 111,428 % 98,358 Other direct expenses 117,688 % 103,014 % General and administrative 82,006 74,496 Total expenses $411,908 % $374,226 Operating income (loss) $214,092 % $207,774 %
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