Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 52

Vertical analysis of income statement
The following comparative income statement (in thousands of dollars) for the 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.

a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place.
b. Comment on the significant changes.