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 $101,402 $106,204
NASCAR purse and sanction 122,950 120,146
fees
Other direct expenses 18,908 20,352
General and administrative 183,215 241,223
Total expenses and other $426,475 $487,925
Income from continuing $63,685 $18,280
operations
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.
b. Which of the following statements are correct?
1. Overall revenue increased between the two years, with changes in the mix of revenue sources. The NASCAR broadcasting revenue remained stable while admissions revenue decreased as a percentage of total revenue
2. One of the major expense categories, NASCAR event management fees, remained stable
3. The Direct expense of events increased, while Other direct expenses remained stable