The following comparative income statement (in thousands of dollars) for the fis

Question

The following comparative income statement (in thousands of dollars) for the fiscal years 2008 and 2007 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.


Revenues:

Admissions
2008: $188,036 ____%
2007: $179,765 ____%

Event-related revenue
2008: 211,630
2007: 197,321

NASCAR Broadcasting revenue
2008: 168,159
2007: 142,517

Other Operating revenue
2008: 43,168
2007: 42,030

Total Revenue: 2008: 610,993 2007: 561,633



Expenses and Other:

Direct expense of events
2008: $113,477
2007: $100,414

NASCAR purse and sanction fees
2008: 118,766
2007: 100,608

Other direct expenses
2008: 116,376
2007: 163,222

General and administrative
2008: 84,029
2007: 80,913

Total expenses and other: 2008: 432,648 2007: 445,157

Income from continuing operations: 2008: 178,345 2007: 115,476

a. Prepare a comparative income statement for fiscal years 2007 and 2008 in vertical form, stating each item as a percent of revenues. Round to one decimal place.

Explanation / Answer

Total Revenue 561,633 610,993 a.Admissions 179,765(32%) 188,036(30.77%) b.Event-related revenue 197,321(35.13%) 211,630(34.64%) c.Broadcasting revenue 142,517(25.37%) 168,159(27.52%) d.Other Operating revenue 42,030(7.48%) 43,168(7.06%) Total expenses 445,157 432,648 a.Direct expense of events 100,414 (22.56%) 113,477(26.23%) b.NASCAR purse and sanction fees 100,608 (22.6%) 118,766(27.45%) c.Other direct expenses 163,222 (36.67%) 116,376(26.89%) d.General and administrative 80,913(18.18%) 84,029(19.42%) Income from continuing operations 115,476 178,345 Profit in % of investment 25.9% 41.22%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.