Question

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

				Current Year			Previous Year
Revenues:
	Admissions			$109,616			$122,428
	Event-related revenue			137,392			144,780
	NASCAR broadcasting revenue			187,488			176,784
	Other operating revenue			61,504			64,008
		Total revenue		$496,000			$508,000
Expenses and other:
	Direct expense of events			$102,176			$97,028
	NASCAR purse and sanction fees			125,488			125,984
	Other direct expenses			14,880			18,288
	General and administrative			193,440			243,332
		Total expenses and other		$435,984			$484,632
Income from continuing operations				$60,016			$23,368

a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers.

Answer 1

Calvin Motorsports Inc.
Comparative Income statement (in thousand of dollars)
For the year ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
	(i)	(i) / $496000	(ii)	(ii) / $508000
Revenues:
Admissions	$ 1,09,616	22.1%	$ 1,22,428	24.1%
Event- related revenues	$ 1,37,392	27.7%	$ 1,44,780	28.5%
NASCAR broadcasting revenues	$ 1,87,488	37.8%	$ 1,76,784	34.8%
Other operating revenues	$     61,504	12.4%	$     64,008	12.6%
Total revenues	$ 4,96,000	100.0%	$ 5,08,000	100.0%
Expenses and other:
Direct expense of events	$ 1,02,176	20.6%	$     97,028	19.1%
NASCAR purse and sanction fees	$ 1,25,488	25.3%	$ 1,25,984	24.8%
Other direct expenses	$     14,880	3.0%	$     18,288	3.6%
General and administrative	$ 1,93,440	39.0%	$ 2,43,332	47.9%
Total expenses and other:	$ 4,35,984	87.9%	$ 4,84,632	95.4%
Income from continuing operations	$     60,016	12.1%	$     23,368	4.6%