Exercise 9-2

Name:
Section:

Score: 100%

Key Code: 2
Instructions
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a.
SPEEDWAY MOTORSPORTS, INC.
Comparative Income Statement (in thousands of dollars)

Year 2 Year 1
Amount Percent Amount
Revenues:
Admissions $ 100,798 20.8% $ 106,050
Event-related revenue 146,849 30.3% 145,749
NASCAR broadcasting revenue 207,369 42.8% 199,014
Other operating revenue 29,293 6.0% 29,836
Total revenue $ 484,309 100.0% $ 480,649
Expenses and other:
Direct expense of events $ (102,196) -21.1% $ (99,500)
NASCAR purse and sanction fees (128,254) -26.5% (125,003)
Other direct expenses (18,513) 3.8%### (18,640)
General and administrative (194,120) -40.1% (286,069)
Total expenses $ (443,083) -91.5% $ (529,212)
Operating income (loss) $ 41,226 8.5% $ (48,563)

b. Broadcasting increased as a percent of total revenue while admissions decreased. A slight increase in total revenue com
to increase.
 Year 1
Percent

22.1%
30.3%
41.4%
6.2%
100.0%

-20.7%
-26.0%
-3.9%###
-59.5%
-110.1%
-10.1%

increase in total revenue combined with a significant decrease in expenses caused operating income