Week 5 Ratio Analysis Memo ACC/291 Kudler Foods Memo To: CEO-Kudler Foods. From: Team B Date: August 22, 2011 This memo is in regard to a recent horizontal and vertical analysis performed on Kudler Foods. The analysis completed was to inform the company of potential interests from different users. The users will be able to use ratios calculated to reveal performance and the current position of the company. The vertical and horizontal analysis is attached along with calculations of liquidity, profitability, and solvency ratios. The liquidity, profitability, and solvency ratios allow users to identify the financial health of Kudler Foods. The liquidity ratios include the current ratio, acid-test ratio, and inventory turnover. …show more content… 78.5% | Gross Profit (Loss) | $2,321,369 (2,321,369/10,796,200) | 21.5% | Expenses | | | Advertising | $263,000 (263,000/10,796,200) | 2.4% | Amortization | $2,700 (2,700/10,796,200) | .0002% | Bad debts | $2,300 (2,300/10,796,200) | .0002% | Bank charges | $19,258 (19,258/10,796,200) | .002% | Charitable Contributions | $5,000 (5,000/10,796,200) | .0004% | Bonuses | $65,000 (65,000/10,796,200) | .006% | System & Network contact | $82,000 (82,000/10,796,200) | .008% | Credit card fees | $125 (125/10,796,200) | .00001% | HR payroll outsource | $8,500 (8,500/10,796,200) | .0008% | Depreciation | $27,750 (27,750/10,796,200) | .003% | Dues and Subscriptions | $29,403 (29,403/10,796,200) | .003% | Insurance | $65,000 (65,000/10,796,200) | .006% | Custodial Contract | $48,000 (48,000/10,796,200) | .004% | Interest | $63,768 (63,768/10,796,200) | .006% | Maintenance contract | $36,000 (36,000/10,796,200) | .003% | Miscellaneous | $1,100 (1,100/10,796,200) | .0001% | Office expenses | $8,300 (8,300/10,796,200) | .0008% | Operating supplies | $5,500 (5,500/10,796,200) | .0005% | Software licenses | $8,200 (8,200/10,796,200) | .0008% | Permits and licenses | $3,500 (3,500/10,796,200) | .0003% | Postage | $46,000 (46,000/10,796,200) | .004% | Professional fees | $32,157 (32,157/10,796,200) | .003% | Office lease |
