subject
Business, 07.11.2020 14:00 angiejtc0908

Vertical Analysis of Income Statement Actual answers only please.

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%).
Fill in the blanks, I had to transcribe it in a readable way.
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% Prior Year Amount Prior 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) ___%

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
Answers: 1

Another question on Business

question
Business, 22.06.2019 01:20
Which of the following statements concerning an organization's strategy is true? a. cost accountants formulate strategy in an organization since they have more inputs about costs. b. businesses usually follow one of two broad strategies: offering a quality product at a high price, or offering a unique product or service priced lower than the competition. c. a good strategy will always overcome poor implementation. d. strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.
Answers: 1
question
Business, 22.06.2019 15:30
For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.
Answers: 1
question
Business, 22.06.2019 20:40
The largest elements of community corrections are
Answers: 1
question
Business, 23.06.2019 15:30
Bill is 31 years old, married, and lived with his spouse michelle from january 2018 to september 2018. bill paid all the cost of keeping up his home. he indicated that he is not legally separated and he and michelle agreed they will not a file a joint return. bill has an 8-year-old son, daniel, who qualifies as bill's dependent. bill worked as a clerk and his wages are $20,000 for 2018. his income tax before credits is $500. in 2018, he took a computer class at the local university to improve his job skills. bill has a receipt showing he paid $1,200 for tuition. he paid for all his educational expenses and did not receive any assistance or reimbursement. bill does not have enough deductions to itemize. bill, michelle, and daniel are u.s. citizens with valid social security numbers. 8. bill does not qualify to claim which of the following: a. head of household b. education benefit c. earned income credit d. all of the above
Answers: 3
You know the right answer?
Vertical Analysis of Income Statement Actual answers only please.

The following compar...
Questions
question
Biology, 20.08.2019 19:30
question
Biology, 20.08.2019 19:30
question
Mathematics, 20.08.2019 19:30
Questions on the website: 13722359