The following comparative income statement (in thousands ofdollars) for two rece
ID: 2457688 • Letter: T
Question
The following comparative income statement (in thousands ofdollars) for two recent years was adapted from the annual report ofSpeedway Motorsports Inc., owner and operator of several majormotor speedways, such as the Atlanta, Texas and Las Vegas MotorSpeedways.
Year2 Year 1
Revenues:
Admissions 156,718 150,253
Event-relatedrevenue 137,074 127,055
NASCAR broadcastingrevenue 110,016 90,682
Other operatingrevenue 42,711 36,539
Totalrevenue 446,519 404,529
Expenses andother:
Direct expense ofevents 81,432 77,962
NASCAR purse and sanctionfees 78,473 69,691
Other directexpenses 102,053 101,408
General andadministrative 65,152 58,698
Total expenses andother 327,110 307,759
Income from continuingoperations 119,409 96,770
a. Prepare a comparative income statement for Years 1 and 2 invertical form, stating each item as a percent ofrevenues. Round to one decimal place.
b. Comment on the significant changes
(Text notes: (a) Year 2 income from continuingoperations, 26.7% of revenues)
Explanation / Answer
Below are the numbers and percentages. This is done easily with aspreadsheet. For example, 156,718/446,519 etc. Year 2 Year 1 Revenues: 156,718 35.1% 150,253 37.1% 137,074 30.7% 127,055 31.4% 110,016 24.6% 90,682 22.4% 42,711 9.6% 36,539 9.0% 446,519 100.0% 404,529 100.0% Expenses and Other: 81,432 18.2% 77,962 19.3% 78,473 17.6% 69,691 17.2% 102,053 22.9% 101,408 25.1% 65,152 14.6% 58,698 14.5% 327,110 73.3% 307,759 76.1% 119,409 26.7% 96,770 23.9%
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