Kids R Kids Company
Selected Data from the Comparative Financial

question 10

Essay

Kids R Kids Company
Selected data from the comparative financial statements are provided below:
$\begin{array}{c}\text { Kids R Kids Company}\\\text { Income Statement}\\\text { Selected amounts}\\\text { (in thousands)}\\\begin{array}{r}\hline\text { Year ended December 31,}\\\begin{array}{lrr}&\underline{\text { Year 2}}&\underline{\text { Year 1}}\\\text { Net sales } & \$ 18,813 & \$ 18,868 \\\text { Interest expense (all paid with cash) } & 277 & 258 \\\text { Income before income taxes } & 5,198 & 6,055 \\\text { Income taxes } & 1,665 & 1,926 \\\text { Net income } & 3.533 & 4.129\end{array}\end{array}\end{array}$ $\begin{array}{c}\text { Kids R Kids Company}\\\text { Income Statement}\\\text { Selected amounts}\\\text { (in thousands)}\\\begin{array}{r}\hline\text { Year ended December 31,}\\\begin{array}{lrr}&\underline{\text { Year 2}}&\underline{\text { Year 1}}\\\text { Net cash provided by operating activities } & \$ 3,433& \$ 4,033 \\\text { Financing activities: } & \\\text { Cash dividends paid } & (1,480))&(1,387)\\\text { Purchase of treasury shares } & (1,563)& (1,262) \\\text { Issuance of debt } &1,818& 155\\\text { Repayment of long-term debt}&(410)&(751)\\\text { Issuances of shares }&302&150\end{array}\end{array}\end{array}$
-Refer to Kids R Kids Company.The total long-term liabilities at December 31,Year 2,are (in thousands):

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Definitions:

Hammer

A tool with a heavy, typically metal head mounted at a right angle to a handle, used for breaking things apart or driving nails.

Congenital Analgesia

A rare condition wherein an individual is born with an inability to feel physical pain.

Pain

A complex sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Subliminal Stimuli

Stimuli that are below the threshold of conscious awareness, yet can influence thoughts, feelings, or actions.