Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Question
Chapter 17, Problem 17.2EX
1.
To determine
Vertical Analysis
Vertical analysis is prepared to analyze the relationship among various financial statements with a particular base amount.
Formula:
This analysis is otherwise called as common-size statement.
To prepare: Comparative income statement for the two-year period.
Given info: Income statement for the two year period.
2.
To determine
To comment: Significant relationships revealed by the vertical analysis.
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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., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.
Current Year
Previous Year
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 revenues
$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
177,926
194,120
Total expenses and other
$435,452
$443,083
Income from continuing operations
$61,011
$41,226
a. Prepare a…
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., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.
Current Year
Previous Year
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 revenues
$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
177,926
194,120
Total expenses and other
$435,452
$443,083
Income from continuing operations
$61,011
$41,226
a. Prepare a…
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., 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…
Chapter 17 Solutions
Accounting
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