A Case Study Kudler Fine Foods

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Kudler Fine Foods Shopping the World for the Finest Food Profitability Ratios As you requested I have provided an entry level financial analysis for Kudler Fine Foods. In my findings I have discovered the profitability ratios are 4.03 times. The ratio seems a little low and there could be some changes to boost the probability and to generate more revenue for the future. Kudler return on assets is 25% which is decent because they are making more money on fewer investments. Their profit margin is 6.2% and the common stockholder’s equity is 90.7%. These are very good numbers and they are giving their investors some return on their money or stocks. Kudler liquidity and solvency ratios provide that the company does have…show more content…
Being able to track sales compared to the previous years’ numbers is a valuable tool in being able to track business. They use this information to forecast on where they think the business will be heading in the next week, month, or year. If the debt percent gets to high then they need to adjust the amount of liabilities that they have to bring that number down. Knowing the times interest earned ratio allows the managers to know at what percent the company is earning interest on its net income. Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders.. Liquidity Ratios: Current assets are a business's total current assets divided by its total current liabilities. Total Current Asset / Total Current liabilities 1,971,000 / 116,290 16.949 = 16.9 Current Ratio- 16.9:1 or 17:1 (16.9 to 1 or 17 to…show more content…
Liabilities and Capital Amounts Percent of net sales Total Liabilities and Capital 2,675,250 100.0 Accounts Payable 96,500 3.6 Sale Tax Payable 3,950 0.14 Payroll Tax Payable 15,840 0.59 Accrued Wages Payable 0 — Unearned Revenue 0 — Short-Term Notes Payable 0 — Short-Terms Loan Payable 0 — Total Current Liabilities 116,290 4.3 Long Term Notes Payable 630,000 23.5 Total Long Term Abilities 630,000 23.5 Total Liabilities 746,290 27.9 Owner Equity 746,290 27.9 Net Profit 1,182,670 44.2 Total capital 1,928,960 72.1 Vertical Analysis of Income Statement Revenue: Gross Sales 10,804,000 1.0 Less: Sales Returns and Allowances 7,800 7.2 Net Sales 10,796,200 100.0 Assets Amounts Percent of net sales Cost of Goods Sold: Beginning Inventory 467,890 4.3 Add: Purchases 3,752,891 34.8 Freight In 165,010 1.5 Direct Labor 3,769,591 34.9 Indirect Expenses 748,539 6.9 Less: Ending Inventory 429,090 4.0 Cost of Goods Sold 8,474,831 78.5 Gross Profit 2,321,369 21.5 Expenses: Advertising 263,000 2.4 Amortization 2,700 2.5 Bad Debts 2,300 2.1 Bank Charges 19,258 .1 Charitable Contributions 5,000 4.6 Bonuses 65,000 .6 Systems & Network Contract 82,000

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