![subject](/tpl/images/cats/ekonomika.png)
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) ___
b. Which of the following statements are correct?
A. Overall revenue increased between the two years, with changes in the mix of revenue sources. The NASCAR broadcasting revenue remained stable while admissions revenue decreased as a percentage of total revenue.
B. One of the major expense categories, NASCAR event management fees, remained stable.
C. The Direct expense of events increased, while Other direct expenses remained stable.
D. General and administrative expenses, however, decreased significantly. This decreased general and administrative cost was the driving factor behind the increase in income from continuing operations.
![ansver](/tpl/images/cats/User.png)
Answers: 3
Another question on Business
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 08:30
Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance
Answers: 3
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 10:10
Karen is working on classifying all her company’s products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market. what type of strategic framework is she using?
Answers: 2
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 19:30
Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)
Answers: 2
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 22:10
Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.
Answers: 1
You know the right answer?
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of d...
Questions
![question](/tpl/images/cats/en.png)
English, 12.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
History, 12.10.2020 06:01
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/istoriya.png)
History, 12.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 12.10.2020 06:01
![question](/tpl/images/cats/istoriya.png)
History, 12.10.2020 06:01
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 12.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 12.10.2020 06:01
![question](/tpl/images/cats/mat.png)
Mathematics, 12.10.2020 06:01
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 12.10.2020 06:01
![question](/tpl/images/cats/health.png)
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 12.10.2020 06:01
![question](/tpl/images/cats/en.png)
English, 12.10.2020 06:01
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/istoriya.png)
History, 12.10.2020 06:01
![question](/tpl/images/cats/biologiya.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 12.10.2020 06:01
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 12.10.2020 06:01