Vertical Analysis of Income Statement

The following comparative income statement (in thousands ofdollars) for the two recent fiscal years was adapted from theannual report of Motor Speedways Inc., owner and operator ofseveral major motor speedways.

				Current Year		Previous Year
Revenues:
	Admissions	$89,870			$102,690
	Event-related revenue	145,684			147,189
	NASCAR broadcasting revenue	170,753			161,859
	Other operating revenue	66,693			77,262
		Total revenues	$473,000			$489,000
Expenses and other:
	Direct expense of events	$97,911			$97,800
	NASCAR purse and sanction fees	116,358			117,849
	Other direct expenses	16,082			21,027
	General and administrative	187,308			221,028
		Total expenses and other	$417,659			$457,704
Income from continuing operations	$55,341			$31,296

a. Prepare a comparative income statement forthese two years in vertical form, stating each item as a percent ofrevenues. Enter all amounts as positive numbers. (Note: Due torounding, amounts may not total 100%).

Round your percentages to one decimal place. Due to roundingdifferences, you will need to:

1. Calculate total expenses and other percentage by adding theexpense percentages
2. Calculate the income from continuing operations percentage bydeducting total expenses and other percentage from total revenuepercentage.

Motor Speedways Inc.
Comparative Income Statement (in thousands ofdollars)
For the Years Ended December 31
	Current Year Amount	Current Year Percent	Prior Year Amount	Prior Year Percent
Revenues:
Admissions	$89,870	%	$102,690	%
Event-related revenue	145,684	%	147,189	%
NASCAR broadcasting revenue	170,753	%	161,859	%
Other operating revenue	66,693	%	77,262	%
Total revenues	$473,000	%	$489,000	%
Expenses and other:
Direct expense of events	$97,911	%	$97,800	%
NASCAR purse and sanction fees	116,358	%	117,849	%
Other direct expenses	16,082	%	21,027	%
General and administrative	187,308	%	221,028	%
Total expenses and other	$417,659	%	$457,704	%
Income from continuing operations	$55,341	%	$31,296	%

b. While overall revenue   somebetween the two years, the overall mix of revenue sources didchange somewhat. The NASCAR broadcastingrevenue   as a percent of total revenue by 3percentage points, while the percent of admissions revenue to totalrevenue   by 2 percentage points. Overall, itappears that income from continuing operations has significantlyimproved because of  .