Learning Team Ratio Analysis Paper Kudler Fine Foods Liquidity Ratio

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Learning Team Ratio Analysis Paper Kudler Fine Foods Liquidity Ratio Upon reviewing the financial statements of Kudler Fine Foods, I came up with the following financial ratio for the company: The Kudler Fine Foods’ current total asset is \$1,971,000 and the total current liabilities is \$116,290. The company’s current ratio is 16.95. (1,971,000/116,290) = 16.949=16.5 Therefore, for every \$1 that our company owes in short term, there is \$16.95 in assets available that we can convert to cash in short term. Our company’s Debt Ratio is Total Debt is divided by our Total Assets. Our Total Current Liabilities are as follows: Accounts Payable 96,500 Sales Tax Payable 3,950 Payroll Tax Payable 15,840 and our Total Long Term Liabilities are the following: Long Term Notes Payable 630,000 Therefore, the Total Liabilities we have is \$ \$746,290 and our Total Assets is \$2,675,250. 746,290 / 2,675,250 = 0.27 or 27%. The Acid Test Ratio or Quick Ratio for the company is computed as follows: Cash \$1,430,000 Accounts Receivable \$86,000 Short Term Investment \$0 = \$1,516,000 Current Liabilities \$116,290 \$1,516,000/\$116,290 = 13.036 or 13.07 With this result, our financial statement is showing that our company can immediately convert a portion of our assets into cash to pay our short term debts. The Inventory Turnover of the company is computed as follows: Cost of Goods Sold \$8,474,831 Less: Ending Inventory \$429,090 \$8,474,831/\$429,090 = 19.75 or 19.8 times The Receivables Turnovers of the company is computed as follows: Total Net Sales \$10,796,200 Accounts Receivable \$86,000 \$10,796,200/\$86,000 = 125.5 times MY SHARE OF THE MEMO This memo is to discuss the liquidity ratio that was performed recently in regards to Kudler Fine Foods. The liquidity ratio that was performed indicated that the amount of the company’s