World Wrestling Entertainment, Inc. (WWE) is a sports media and entertainment company primarily focused on professional wrestling. WWE€™s income statements through operating income for two recent years are as follows (in thousands):

a. Prepare a vertical analysis of the income statements for both years.
b. Interpret the vertical analysis.

Transcribed Image Text:

World Wrestling Entertainment, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 658,768 $ 729,216 Revenues Expenses: Cost of revenues... Selling, general, and administrative expenses.. Depreciation and other expenses . Total expenses. Operating income (loss).. $ (430,032) (219,132) (24,411) $ (673,575) $ 55,641 $ (379,316) (192,773) (29,885)* $ (619,974) $ 38,794 ........