Question

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 purse and sanction fees 110,893 98,892 Other direct expenses 147,430 131,454 General and administrative 81,407 74,772 Total expenses $438,444 $402,804 $200,196 $202,556 Income (loss) from continuing operations Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $40,704

Answer 1

Solution:

Speedway Motor Sports Inc
Comparative income statements (Thousand of dollars)
For the year ended Dec 31 year 2 and year 1
Particulars	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
Revenues:
Admissions	$186,531.00	29.1%	$185,121.00	30.7%
Event releated revenue	$202,556.00	31.6%	$182,106.00	30.2%
Nascar Broadcasting revenue	$190,377.00	29.7%	$159,795.00	26.5%
Other operating revenue	$61,536.00	9.6%	$75,978.00	12.6%
Total revenue	$641,000.00	100.0%	$603,000.00	100.0%
Expenses and other:
Direct expense of event	$98,714.00	15.4%	$97,686.00	16.2%
Nascar purse and sanction fees	$110,893.00	17.3%	$98,892.00	16.4%
Other direct expense	$147,430.00	23.0%	$131,454.00	21.8%
General and administrative	$81,407.00	12.7%	$74,772.00	12.4%
Total expenses	$438,444.00	68.4%	$402,804.00	66.8%
Operating income (Loss)	$202,556.00	31.6%	$200,196.00	33.2%