s Window Help 100% Fri,11:19 PM Vertical Analysis of Income Statement The follow
ID: 2599033 • Letter: S
Question
s Window Help 100% Fri,11:19 PM Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Hotor Spendwa Inc., owner and operator of several major motor speedways Current Year Previous Year $91,845 37,061 174,741 67,353 $471,000 $104,490 136,080 165,726 79,704 $486,000 NASCAR broadcasting revenue Other operating revenue Total revenues Expenses and other Direct expense of events NASCAR purse and sanction fees Other direct expenses General and administrative $96,084 116,337 17,898 183,690 1414,009 56,991 98,172 120,042 22,356 215,298 Total expenses and other Income from continuing operations 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 30,132 unters. (Note: Due to roundng, amours may not total 100%). All work saved 0 5 0Explanation / Answer
a.] Comparative income statement
91845 / 471000
=19.5 %
104490 / 486000
=21.5%
137061/ 471000
=29.1%
136080 / 486000
=28%
174741/ 471000
= 37.1%
165726 / 486000
=34.1%
67353 / 471000
=14.3%
79704/ 486000
= 16.4%
96084 / 471000
= 20.4%
98172 / 486000
=20.2%
116337 / 471000
= 24.7%
120042 / 486000
= 24.7%
17898 / 471000
= 3.8%
22356 / 486000
= 4.6%
183690 / 471000
= 39%
215298 / 486000
= 44.3%
b.] Current year Prevoius year
Income from continuing operations (% of revenue) 12.1% 6.2%
Current year Amount Current year % Prevoius year Amount Previous year % Revenue : Admissions 9184591845 / 471000
=19.5 %
104490104490 / 486000
=21.5%
Event related revenue 137061137061/ 471000
=29.1%
136080136080 / 486000
=28%
NASCAR Broadcasting revenue 174741174741/ 471000
= 37.1%
165726165726 / 486000
=34.1%
Other operating revenue 6735367353 / 471000
=14.3%
7970479704/ 486000
= 16.4%
Total revenue $471000 100% $486000 100% Expense and other : Direct expense of events 9608496084 / 471000
= 20.4%
9817298172 / 486000
=20.2%
NASCAR purse and sanction fees 116337116337 / 471000
= 24.7%
120042120042 / 486000
= 24.7%
Other direct expenses 1789817898 / 471000
= 3.8%
2235622356 / 486000
= 4.6%
General and administrative 183690183690 / 471000
= 39%
215298215298 / 486000
= 44.3%
Total expense and other $414009 87.9% $455868 93.8% Income from continuing operations $56991 12.1% $30132 6.2%Related Questions
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