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 comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. (Note: Due to rounding, amounts may not total 100%). Round your percentages to one decimal place.

Speedway Motorsports, Inc.,

Vertical Analysis of Income Statement

                                           Current Year              Previous Year

Revenues:

Admissions                                 20.28≅ 20.3           20.81 ≅20.8

Event-related revenue                 29.61 ≅ 29.6              30.32≅30.3

NASCAR broadcasting revenue    43.80≅ 43.8             42.82≅42.8

Other operating revenue                6.31  ≅  6.3            6.05≅6.1

Total revenues                                100%                     100%

Expenses and other:

Direct expense of events                 21.01 ≅ 21.0                21.10≅ 21.1

NASCAR event management fees  29.61≅  29.6                26.48≅ 26.5

Other direct expenses                      3.94  ≅  3.9                3.82≅3.8

General and administrative              35.84 ≅ 35.8                 40.08≅40.1

Total expenses and other                 87.72 ≅  87.7               91.49≅ 91.5

Income from continuing operations 12.23%                       8.51%

Explanation:                                    

Vertical Analysis =(Income Statement Item/ Sales )*100

We prepared a comparative income statement for these two years in vertical form, stating each item as a percent of revenues.

                                                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

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top-level manager

me later < 3