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Kids R Kids Company
Selected Data from the Comparative Financial

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Kids R Kids Company
Selected data from the comparative financial statements are provided below:
 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 interest coverage (accrual basis)ratio at December 31,Year 2,is:  Kids R Kids Company Income Statement Selected amounts (in thousands) Year ended December 31, Year 2 Year 1 Net sales $18,813$18,868 Interest expense (all paid with cash) 277258 Income before income taxes 5,1986,055 Income taxes 1,6651,926 Net income 3.5334.129\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}  Kids R Kids Company Income Statement Selected amounts (in thousands) Year ended December 31, Year 2 Year 1 Net cash provided by operating activities $3,433$4,033 Financing activities:  Cash dividends paid (1,480))(1,387) Purchase of treasury shares (1,563)(1,262) Issuance of debt 1,818155 Repayment of long-term debt(410)(751) Issuances of shares 302150\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 interest coverage (accrual basis)ratio at December 31,Year 2,is:

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Definitions:

Accounting Equation

The foundation of double-entry bookkeeping, stating that Assets = Liabilities + Owners' Equity.

Excess Space

Excess space refers to the additional or unused space within a property or facility that exceeds the current needs of the occupants or users.

Materiality Constraint

An accounting principle that allows for the exclusion of insignificant financial information from reports because it would not impact decision-making.

Accounting Information

Data related to financial transactions and status of a business, used for analysis, decision making, and financial reporting.

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