...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)...
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...Individual Assignment – Week 5 Financial security is one of the biggest issues surrounding companies in the business world. Some company revenues have been unsteady over the past few years, particularly because of the state of the economy. However, financial ratios can be beneficial in helping a company regain its financial standing while pointing out its strengths and weaknesses. These ratios offer a summarized analysis of a company’s financial progress in its respective industry. There are a number of financial ratios that can be used to help measure a company’s progress, such as current ratio, debt ratio, profit margin, and return on assets. Riordan Manufacturing and Kudler Fine Foods are two businesses that appear to be doing well. Still, comparing the two by using the aforementioned financial ratios give a better examination of how each is fairing in their industries. Current ratio Current ratios show the relationship between a company’s current assets and it current liabilities. Ideally, a 2 to 1 ratio is deemed as the standard for companies to be in good financial standing. The formula used to calculate current ratios are current assets divided by current liabilities. The current ratio for Riordan Manufacturing is 4.71 while the industry average is 1.24, which indicates that the company is lagging behind in relation to what other companies in the industry are doing. For Kudler Fine Foods, its current ratio is 16.9. Its industry average is 1.52, which shows a much lower...
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...Ratio Analysis Memo – ACC/291 University of Phoenix To: Ms. Kathy Kudler, CEO From: Accounting Re: Company Ration Analysis Kudler Fine Foods accounting department has completed a full analysis on the 2003 financial statistics. Different tools of analysis are used to help complete the analysis measurement. Below you will find exact calculations on liquidity ratios, profitability ratios, and solvency ratios. Financials from 2003 have helped us get an overall view of the company’s well being and with further years to come we will be better able to estimate a yearly return. To measure the company’s short-term ability to pay its maturing obligations and to meet unexpected needs for cash, or liquidity ratio, several ratios are used. First is the current ratio rate. This measures the company’s liquidity and short-term debt-paying ability. Kudler’s current ratio is 16.95:1. This means the company has $16.95 of current asset for every dollar of current liability. This is great in comparison to the average industry’s ratio, which is 1:06:1. Kudler’s acid-test ratio, which measure immediate liquidity, is 13:04:1. The average industry’s is 0.29:1. The receivable turn-over rate is 125.54. In other words, Kudler Fine Foods collects 125 receivables during its given period. This rate is over four times the industry average of 28.2. After measuring the inventory turnover, Kudler Fine foods inventory is sold 18.9 times during its accounting period. With the average industry rate...
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...Kudler Fine Foods Financials Kudler Fine Foods Financials Kudler Fine Foods is a local San Diego retailer of specialty food items with three upscale stores in La Jolla, Del Mar, and Encinitas. They provide the finest domestic and imported food items at reasonable prices. The store’s founder, Kathy Kudler, built the enterprise based on her vision of selecting and purchasing only the finest of products, offering customers a delightful and pleasing shopping experience, and becoming a purveyor of choice for customers seeking to purchase the best epicurean. The members of Team C learning team analyzed the financial statements of Kudler Fine Foods by making comparisons at the intra-company level, industry averages, and with other competing companies (inter-company basis). Team C used horizontal analysis, vertical analysis, and ratio analysis to assess the significance of Kudler’s financial data. Team C presents the numerical data below, followed by the analysis of the financial statements. Financial Ratios Kudler Industry Average Safeway Current Ratio 16.94:1 1.96:1 0.83:1 Quick Ratio 13.04:1 0.73:1 0.27:1 Receivable Turnover 125.5X Not avail 72X Average Collection Period 3 days Not avail 5 days Inventory Turnover 19.8X 9.65X 12.5X Days in Inventory 18.43 days 38.82 days 29.20 days Asset Turnover 4.03X 4.0X 2.89X Profit Margin 6.2% 5.2% 1.18% Return on Assets 25.3% 3.1% 5.8% Return on Common SE 90% 9.0% 11.91% Debt...
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...Kudler Fine Foods has come a long way since they first opened their doors. The main goal of the company is to satisfy the customers' needs. Kudler Fine Foods has learned that by offering incentives for their frequent customers could increase the revenue of the company. Kudler Fine Foods must first take into consideration the legal, ethical and security issues for the frequent shopper program. Kudler Fine Foods will also need to take into consideration the financial concerns when it comes to the revenue and the cost to offer the frequent shopper program. Kudler Fine Foods could increase the customer base through word of mouth of existing customers, which could bring in new customers along with supporting the growth of the existing customer's purchases. The frequent shopper program will offer their existing customers that shop frequently to earn points that they could redeem towards high end gift items, airline First-class upgrades, or other specialty foods (kudlerfinefoods.com, 2007). How many points each customer will earn will depend on their own specific purchasing pattern. One of several factors that Kudler Fine Foods will need to take into consideration is the legal aspect for the company to offer this type of program (Kudler Fine Foods, 2007). In order for the Kudler Fine Foods to offer a frequent shopper program, they need research the best way to protect their customers' privacy rights. The frequent shopper program will store the customers' information into a database...
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...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. Kudler Fine Foods has no accounts receivables so there was no need for a receivables turnover calculation. The liquidity ratios show that the amount of liquid assets is high in comparison to the industry average. This means that Kudler Foods has assets that can be converted to cash very quickly. Creditors would look at these calculations and be appeased by the ability Kudler Foods has to pay their short-term liabilities. The profitability ratios calculations included asset turnover, profit margin, return on assets, and return on common stock-holder equity. The ratios calculated show by use of profitability ratios the company financial position is worrisome. This is said because ROA is low. When ROA is low then the company is using less money on...
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...Kudler Fine Foods Product Launch Kudler Fine Foods Product Launch Plan Introduction Kudler Fine Foods offers a variety of gourmet products including fine cheese, wines, and spirits. Kudler believes adding a premium gourmet chocolate line is beneficial to Kudler’s well-established theme; offering different types of chocolate, made with organic and nonorganic ingredients. This new product has an attractive price range for the customer’s demand. Kudler’s domestic and international expansion is highlighted in this product launch plan identifying the product description and positioning. It also provides information on targeting, market needs, and market potential and market growth. A domestic and international SWOT analysis is provided and market research indentifying the competition, the marketing objectives and strategies, pricing, marketing communication, and distribution strategies. For this launch plan, a budget and the marketing research strategy is also included. Product Description Chocolate is a luxurious treat. For many decades, it has been given as gifts to express love and affection for another person. Kudler enters the moderate market of fine gourmet chocolates. This new product is comprised of dark chocolate, milk chocolate, and white chocolates, assorted truffles and biscuits. The types of chocolate Kudler offers include: • Handmade chocolate: chocolates using spices, herbs, fruit flavors, coffees and tea flavorings including nuts and dried...
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...Introduction Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan area. We have three locations (La Jolla, Del Mar and Encinitas). Each store has approximately 8,000 square feet of retail space located in a fashionable shopping center. We have the very best domestic and imported fare at every location. FSP Project Scope The scope of the FSP project includes all: * Hardware * Software * Infrastructure * Network Components * Documentation * Training Frequent Shopper Project Stakeholders The Project Management Institute’s (PMI®) Guide to the Project Management Body of Knowledge (PMBOK Guide®) expands this definition to include anyone who, “… is actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project.” A logical first step to identifying project stakeholders is to look at possible stakeholder groups. In general, these can be sorted into three levels: Level 1 - Stakeholders within the project organization: Senior Management, Sponsor, Customer, Users The level one stakeholder defines the need and requirements for the project, and controls the traditional project constraints of cost, time, and scope (the “triple constraints”). This includes the organization senior management, the sponsor, and possibly others who, by their position, may influence the project. Senior managers approve and contribute resources to the project...
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...System Integrity and Validation Vincent A. Davis, Jr. ACC/542 October 21, 2013 Irene Branum Preface In the last few weeks the accounting firm, Team D has looked into characteristics of Kudler Fine Foods and provided recommendations to update and replace existing components of the IT system. These recommendations made can yield in the company’s increased productivity, profitability, and remove potential threats. Team D determined that industry specific software is useful in comparison to customized software. Four main modules such as payroll, account payable, accounts receivable, and inventory were developed as well as enhancement of each flowchart based on the appropriate system. Team D examined the database completeness at Kudler’s intranet and developed a pivot table; therefore, making the decision-making process easy. External and internal risks were analyzed and internal control points were developed by incorporating both risks and controls into a flowchart. Team D also showed why findings and recommendations are more useful to the company in comparison to SAS70 and SAS94 audits. The team identified events that will lessen the dependence on auditing through computer and showed a brief description how the audit should be conducted. System Integrity and Validation Kudler Finer Foods has looked for recommendations regarding the company, to include computer information system, automated process of an accounting information system, data table analysis, internal control...
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...business operations system. The current accounting system at Kudler Fine Foods, while comprehensive, lacks some key features that can increase benefits and reduce loss. This system is modular in design, and is made to be scalable so additions or updates can be made and the new system can incorporate and build onto the existing system. The accounting information system is used to gather financial data and provide information for internal and external decision making. These decisions include marketing, purchasing, payroll, investments, sales, and accounts payable and receivable. The purpose of implementing a new accounting system is to take advantage of these key new features and core technologies that will help keep the company agile in its decision making. It will also make the company better prepared to compete in today’s economy and market. Key Features The key features for the proposed accounting system include integrating the accounting system with the enterprise system, auditing software, budgeting software, integrated accounting and finance software. The use of XBRL programming language for filing reports, ERP (Enterprise Resource Planning), SCM (Supply Chain Management), CPFR (Collaborative Planning, Forecasting and Replenishment), CRM (Customer Relationship Management), and KM (Knowledge Management) are also key elements of this system (Turban & Volonino, 2011) . Financial planning and budgeting, financial and economic forecasting, as well as integrated accounting and...
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