Question

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

1			Current Year	Previous Year
2	Revenues:
3	Admissions		$94,800.00	$107,140.00
4	Event-related revenue		132,720.00	132,951.00
5	NASCAR broadcasting revenue		173,958.00	164,119.00
6	Other operating revenue		72,522.00	82,790.00
7	Total revenue		$474,000.00	$487,000.00
8	Expenses and other:
9	Direct expense of events		$96,696.00	$93,017.00
10	NASCAR purse and sanction fees		117,552.00	119,802.00
11	Other direct expenses		18,960.00	28,733.00
12	General and administrative		193,392.00	216,228.00
13	Total expenses and other		$426,600.00	$457,780.00
14	Income from continuing operations		$47,400.00	$29,220.00
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.

Motor Speedways Inc.

Comparative Income Statement (in thousands of dollars)

For the Years Ended December 31

1		Current Year	Current Year	Previous Year	Previous Year
2		Amount	Percent	Amount	Percent
3	Revenues:
4	Admissions	$94,800.00		$107,140.00
5	Event-related revenue	132,720.00		132,951.00
6	NASCAR broadcasting revenue	173,958.00		164,119.00
7	Other operating revenue	72,522.00		82,790.00
8	Total revenue	$474,000.00	100.0%	$487,000.00	100.0%
9	Expenses and other:
10	Direct expense of events	$96,696.00		$93,017.00
11	NASCAR purse and sanction fees	117,552.00		119,802.00
12	Other direct expenses	18,960.00		28,733.00
13	General and administrative	193,392.00		216,228.00
14	Total expenses and other	$426,600.00		$457,780.00
15	Income from continuing operations	$47,400.00		$29,220.00

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

• Calculate total expenses and other percentage by adding the expense percentages

• Calculate the income from continuing operations percentage by deducting total expenses

Answer 1

Motor Speedways Inc. Comparative Income Statement (in thousands of dollars) For the Years Ended December 31 Current Year Previous Year Amount Percent Amount Percent Revenues: Admissions $ 94,800 20.0% $ 107,140 22.0% Event-related revenue $ 132,720 28.0% $ 132,951 27.3% NASCAR broadcasting revenue $ 173,958 36.7% $ 164,119 33.7% Other operating revenue 72,522 15.3% $ 82,790 17.0% Total revenue $ 474,000 100.0% $ 487,000 100.0% Expenses and other: Direct expense of events $ 96,696 20.4% $ 93,017 19.1% NASCAR purse and sanction fees $ 117,552 24.8% $ 119,802 24.6% Other direct expenses $ 18,960 4.0% $ 28,733 5.9% General and administrative $ 193,392 40.8% $ 216,228 44.4% Total expenses and other $ 426,600 90.0% $ 457,780 94.0% Income from continuing operations $ 47,400 10.0% $ 29,220 6.0% $