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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 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.
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	$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	%

b. Overall revenue (Increased/Decreased) some between the two years, accompanied by a slight change in the overall mix of revenue sources. The NASCAR broadcasting revenue (I/D) by 1.0% of total revenue, while event-related revenue (I/D) by 0.7% of total revenue. NASCAR event management fees, (I/D) by 0.4%of total revenue. General and administrative expenses, however, (I/D) by over 4% of total revenue. It appears that (aggressive cost cuttting/ a large increase in total revenue) has helped the company significantly improve its income from continuing operations.

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