(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

(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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data for Kahn, Inc. follows: Kahn, Inc. Comparative Income Statement Years Ended Dec. 31, 2019 and 2018 2019 2018 Net Sales Revenue 550,000 500,000 Expenses: Cost of Goods Sold 245,000 220,000 Selling and Administrative Expenses 100,000 96,000 Other Expenses (Interest Expense) 12,000 9,000 Income Tax Expense 58,000 47,000 Total Expenses 415,000 372,000 Net Income 135,000 128,000 Prepare a horizontal analysis of the comparative income statement of Kahn, Inc. (Round to one decimal place.)
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am.112.
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