Kids R Kids Company
Selected Data from the Comparative Financial

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 (cash basis)ratio at December 31,Year 2,is: