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. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.

Current Year Previous Year
Revenues:
Admissions $90,639 $100,694
Event-related revenue 136,900 146,980
NASCAR broadcasting revenue 224,227 217,469
Other operating revenue 60,390 31,320
Total revenues $512,156 $496,463
Expenses and other:
Direct expense of events $(102,786) $(104,303)
NASCAR event management fees (137,727) (133,682)
Other direct expenses (43,784) (19,541)
General and administrative (166,663) (285,166)
Total expenses and other $(450,960) $(542,692)
Income from continuing operations $61,196 $(46,229)
a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. (Note: Due to rounding, amounts may not total 100%).

Round your percentages to one decimal place.

Speedway Motorsports, Inc.
Comparative Income Statement (in thousands of dollars)
For the Years Ended December 31
Current Year Amount Current Year Percent Prior Year Amount Prior Year Percent
Revenues:

Admissions $90,639 ___% $100,694 %

Event-related revenue 136,900 ___% 146,980 ___%

NASCAR broadcasting revenue 224,227 ___% 217,469 ___%

Other operating revenue 60,390 ___% 31,320 ___%

Total revenues $512,156 ___% $496,463 ___%

Expenses and other:

Direct expense of events $(102,786) ___ $(104,303) ___

NASCAR event management fees (137,727) ___ (133,682) ___

Other direct expenses (43,784) ___ (19,541) ___

General and administrative (166,663) ___ (285,166) ___

Total expenses and other $(450,960) ___ $(542,692) ___

Income from continuing operations $61,196 ___% $(46,229) ___

b. Which of the following statements are correct?

A. 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.

B. One of the major expense categories, NASCAR event management fees, remained stable.

C. The Direct expense of events increased, while Other direct expenses remained stable.

D. General and administrative expenses, however, decreased significantly. This decreased general and administrative cost was the driving factor behind the increase in income from continuing operations.