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 |
$96,224.00 |
$108,712.00 |
4 |
Event-related revenue |
139,872.00 |
154,940.00 |
5 |
NASCAR broadcasting revenue |
192,944.00 |
182,372.00 |
6 |
Other operating revenue |
66,960.00 |
61,976.00 |
7 |
Total revenue |
$496,000.00 |
$508,000.00 |
8 |
Expenses and other: |
||
9 |
Direct expense of events |
$98,208.00 |
$100,584.00 |
10 |
NASCAR purse and sanction fees |
126,976.00 |
128,016.00 |
11 |
Other direct expenses |
27,776.00 |
26,924.00 |
12 |
General and administrative |
188,480.00 |
227,076.00 |
13 |
Total expenses and other |
$441,440.00 |
$482,600.00 |
14 |
Income from continuing operations |
$54,560.00 |
$25,400.00 |
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. Rounding instructions |
Comment on the significant changes.
While overall revenue ______ some between the two years, the overall mix of revenue sources did change somewhat. The NASCAR broadcasting revenue _______ as a percent of total revenue by 3 percentage points, while the percent of admissions revenue to total revenue __________ by 2 percentage points. Overall, it appears that income from continuing operations has significantly improved because of ________________.
ANSWER SHEET
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 |
$96,224.00 |
$108,712.00 |
||
5 |
Event-related revenue |
139,872.00 |
154,940.00 |
||
6 |
NASCAR broadcasting revenue |
192,944.00 |
182,372.00 |
||
7 |
Other operating revenue |
66,960.00 |
61,976.00 |
||
8 |
Total revenue |
$496,000.00 |
100.0% |
$508,000.00 |
100.0% |
9 |
Expenses and other: |
||||
10 |
Direct expense of events |
$98,208.00 |
$100,584.00 |
||
11 |
NASCAR purse and sanction fees |
126,976.00 |
128,016.00 |
||
12 |
Other direct expenses |
27,776.00 |
26,924.00 |
||
13 |
General and administrative |
188,480.00 |
227,076.00 |
||
14 |
Total expenses and other |
$441,440.00 |
$482,600.00 |
||
15 |
Income from continuing operations |
$54,560.00 |
$25,400.00 |
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was...
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. Current Year Previous Year Revenues: Admissions $94,800.00 $107,140.00 Event-related revenue 132,720.00 132,951.00 5 NASCAR broadcasting revenue 173,958.00 164,119.00 Other operating revenue 72,522.00 82,790.00 Total revenue $474,000.00 $487,000.00 Expenses and other: Direct expense of events $96,696.00 $93,017.00 NASCAR purse and sanction fees 117,552.00 119,802.00 Other direct expenses 18,960.00...
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...
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...
Vertical Analysis of Income Statement The following comparative income statement (in thousands of dollars) for two recent fiscal years 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. Current Year Previous Year Revenues: Admissions $116,034 $130,239 Event-related revenue 151,562 163,621 NASCAR broadcasting revenue 192,662 185,394 Other operating revenue 29,902 26,951 Total revenues $490,160 $506,205 Expenses and other: Direct expense of events...
The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Bristol, Charlotte, Texas, and Las Vegas Motor Speedways Year 2 Year 1 Revenues: $185,121 Admissions $186,531 Event-related revenue 182,106 202,556 NASCAR broadcasting revenue 190,377 159,795 61,536 75,978 Other operating revenue $603,000 Total revenue $641,000 Expenses and other: $97,686 Direct expense of events $98,714 NASCAR...
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Previous Year Year $429,000 $378,000 270,270 211,680 64,350 68,040 Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense 68,640 56,700 8,580 15,120 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Innovation Quarter Inc. Comparative Income Statement For...
Horizontal Analysis of the Income Statement Income statement
data for Winthrop Company for two recent years ended December 31,
are as follows: Current Year Sales Cost of goods sold Gross profit
$665,600 567,000 Previous Year $520,000 450,000 $98,600 $70,000
Selling expenses$29,500 Administrative expenses 26,460 $25,000
21,000 $ 46,000 Total operating expenses$55,960 Income before
income tax$42,640 $ 24,000 Income tax expenses 17,1009,600 Net
income$ 25,540$ 14,400
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $460,800 375,000 $360,000 300,000 Cost of goods sold Gross profit $85,800 $60,000 Selling expenses $24,780 $21,000 Administrative expenses 22,680 18,000 Total operating expenses $47,460 $39,000 Income before income tax $21,000 $38,340 15,300 Income tax expenses 8,400 Net income $23,040 $12,600 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease)...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $932,400 $740,000 Cost of goods sold 787,200 640,000 Gross profit $145,200 $100,000 Selling expenses $41,760 $36,000 Administrative expenses 37,200 30,000 Total operating expenses $78,960 $66,000 Income before income tax $66,240 $34,000 Income tax expenses 26,500 13,600 Net income $39,740 $20,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease)...
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $605,000 $520,000 Cost of goods sold 363,000 286,000 Selling expenses 96,800 93,600 Administrative expenses 102,850 83,200 Income tax expense 18,150 20,800 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation...