Kids R Kids Company
Selected Data from the Comparative Financial

question 77

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.
A) The total liabilities at December 31, Year 2, are (in thousands);
B) The debt-to-equity ratio at December 31 , Year 2, is:

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Definitions:

Secret Santa

A popular holiday tradition where individuals anonymously exchange gifts within a group, often with the use of a randomized selection process to assign gift-givers to recipients.

Breastfeeding Room

A designated private space where mothers can nurse their babies or express milk, often equipped with comfortable seating and facilities for hygiene.

Marital Satisfaction

The degree to which partners in a marriage perceive their relationship as fulfilling, happy, and rewarding.

Adequate Income

Adequate income refers to earnings that are sufficient to meet an individual's or family's basic needs, including housing, food, and healthcare.