Kudler Fine Foods | To: | Kathy Kudler, CEO | From: | | Date: | June 10, 2013 | Re: | Ratio Analysis Memo |

Kudler Fine Foods have traveled across the world to bring people upscale foods and wines carrying a wide variety of products that is affordable to all. In order to meet the organization business demands sales, company’s goods, and depreciation are must guarantee maintain stability. Kudler Fine Foods has programs in three stores in Southern California selling the best merchandise and discounts regarding cooking and wine classes to measure the balance sheet, income statement, using horizontal and vertical analysis revealing profits, solvency, and liquidity to show how well the company has progressed over the years. Kathy, analyzing the company’s financial performance is an important tool. You will find the following data useful for understanding how well the company has been performing. Different users such as investors, management, bankers, and creditors will appreciate the knowledge of the financial situation of Kudler Fine Foods in the past year when making their decision to use the services and products. The liquidity ratio reveals current ratio (16:94:1), acid-test ratio (13:03:1), receivable turnover (no receivables), and inventory turnover (19.8 times). It is vital that Kudler Fine Foods has maintained obligations increasing acid-test ratio experiencing top line growth. Faster inventory turnover proved good sales and measures the level of cash flows. Kudler generated 4.21 (asset turnover), 0.06 (profit margin), .26 (return assets), and 0.5 (return common stock). Kudler Fine Foods have many possibilities having to borrow from savings or