View the step-by-step solution to:

The following comparative income statement (in thousands of dollars) for two recent years was adapted from the annual report of Speedway Motorsports,...

The following comparative income statement (in thousands) of dollars for two recent years.Screen Shot 2018-05-10 at 3.36.49 PM.pngScreen Shot 2018-05-10 at 3.36.59 PM.pngScreen Shot 2018-05-10 at 3.37.11 PM.png

Screen Shot 2018-05-10 at 3.36.49 PM.png

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:
Admissions $227,358 $230,299
Event—related revenue 238,503 218,891
NASCAR broadcasting revenue 192,437 157,573 Other operating revenue 84,702 106,237 Total revenue $743,000 $713,000

Screen Shot 2018-05-10 at 3.36.59 PM.png

Expenses and other: Direct expense of events $117,394 $118,358
NASCAR purse and sanction fees 131,511 119,784
Other direct expenses 181,292 156,860
General and administrative 95,104 89,125 Total expenses $525,301 $484,127 Income (loss) from continuing operations $217,699 $228,873 Note: "General & administrative expenses for the year 1 includes impairment of goodwill of $47,552.

Screen Shot 2018-05-10 at 3.37.11 PM.png

a. Prepare a comparative income statement for Years 1 and 2 in vertical form, stating each item as a percent of revenues. Round percentages to one decimal place. Enter all amounts as positive numbers. Speedway Motorsports, Inc
Comparative Income Statement (in thousands of dollars)
For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount _<
8
_.
,_.
E
3
m
:I
ri- Revenues:
Admissions $227,358 —% $230,299 Club
Event—related revenue 238,503 —% 218,891 SW9
NASCAR broadcasting revenue 192,437 :% 157,573 Sula
Other operating revenue 84,702 :"/a 106,237 [:]%
Tomi revenue $743,000 —% $713,000 [:]% ’ Expenses and other: Direct expense of events $117,394 —% $118,358 SWO
NASCAR purse and sanction fees 131,511 —% 119,784 :an
Other direct expenses 181,292 :% 156,860 SDI.)
General and administrative 95,104 :% 89,125 DVD
Total expenses $525,301 —% $434,127 :lWo
Operating income (loss) $217,599 :‘Vn $228,873 :an

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question