(Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands): Cool Brewery Ltd. Northern Beer Ltd. 2020 2019 2020 2019 Net sales $214,040 $40,450 Cost of goods sold 100,850 16,600 Operating expenses 81,360 14,570 Interest expense 7,890 390 Income tax expense 4,620 1,090 Cash 11,690 $9,490 4,670 $2,680 Other current assets 77,820 83,860 8,500 6,950 Long-term assets (net) 191,930 193,340 30,610 30,120 Current liabilities 75,220 59,230 3,920 4,280 Long-term liabilities 99,310 114,940 7,240 7,050 Share capital 52,600 44,900 17,800 15,000 Retained earnings 54,310 67,620 14,820 13,420

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Chapter1: Financial Statements And Business Decisions
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(Common-size analysis and differences in profitability and leverage)
Comparative fınancial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands):
Cool Brewery Ltd.
Northern Beer Ltd.
2020
2019
2020
2019
Net sales
$214,040
$40,450
Cost of goods sold
100,850
16,600
Operating expenses
81,360
14,570
Interest expense
7,890
390
Income tax expense
4,620
1,090
Cash
11,690
$9,490
4,670
$2,680
Other current assets
77,820
83,860
8,500
6,950
Long-term assets (net)
191,930
193,340
30,610
30,120
Current liabilities
75,220
59,230
3,920
4,280
Long-term liabilities
99,310
114,940
7,240
7,050
Share capital
52,600
44,900
17,800
15,000
Retained earnings
54,310
67,620
14,820
13,420
Transcribed Image Text:(Common-size analysis and differences in profitability and leverage) Comparative fınancial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands): Cool Brewery Ltd. Northern Beer Ltd. 2020 2019 2020 2019 Net sales $214,040 $40,450 Cost of goods sold 100,850 16,600 Operating expenses 81,360 14,570 Interest expense 7,890 390 Income tax expense 4,620 1,090 Cash 11,690 $9,490 4,670 $2,680 Other current assets 77,820 83,860 8,500 6,950 Long-term assets (net) 191,930 193,340 30,610 30,120 Current liabilities 75,220 59,230 3,920 4,280 Long-term liabilities 99,310 114,940 7,240 7,050 Share capital 52,600 44,900 17,800 15,000 Retained earnings 54,310 67,620 14,820 13,420
Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal
place, e.g. 15.1%.)
Cool Brewery
Northern Beer
Net sales
$
214,040
100
$
Cost of goods sold
(100,850) i
47.11
i
(16,60
Operating expenses
(81,360)
37.98
i
(14,5
Interest expense
7,890
3.68
i
Income tax expense
4,620
i
2.15
i
1,0
Net earnings
19,380
9.08
96
Transcribed Image Text:Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal place, e.g. 15.1%.) Cool Brewery Northern Beer Net sales $ 214,040 100 $ Cost of goods sold (100,850) i 47.11 i (16,60 Operating expenses (81,360) 37.98 i (14,5 Interest expense 7,890 3.68 i Income tax expense 4,620 i 2.15 i 1,0 Net earnings 19,380 9.08 96
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