Profit and Loss of Kudler Fine Foods

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Profit and Loss of Kudler Fine Foods
Crystal Jenkins
BSA/310 Business Systems
04/25/2012
Donn Leiske, M.Ed.

The purpose of this paper is to describe the most recent profit and loss statement for
Kudler Fine Foods. “Kudler Fine Foods is a local upscale specialty food store located in the
San Diego metropolitan area” ("Kudler Fine Foods", 2011), that sales bakery and pastry
products, fresh produce, fresh meat & seafood, condiments and packaged foods, and cheese
and specialty dairy products. According to their income statement, the business did pretty
well for a company that only has three locations in San Diego. This paper will first describe
the profit of the company, and last it will describe the loss of the company.
First, Kudler Fine Foods did well with their gross sale which was $10,804,000. The gross
profit which is “the difference between sales (operating) revenue and cost of the goods sold
during the period” (Raiborn, 2010, "Chapter 2: Concepts and Elements Underlying
Accounting"). Kudler had a gross profit of $2,321,369, which is pretty good especially when
their third shop was just opened the same year as the income statement. “The difference
between gross profit and a company’s operating expenses is operating income, also called
income from operations. This amount is an important one because a company’s eventual
success or failure hinges on the profitability of its principal line, or lines, of business”
(Raiborn, 2010, "Chapter 2: Concepts and Elements Underlying Accounting"). Kudler   had a
net operating income of $668, 950. Net income is the “income before income taxes” which
“is determined by adding (or subtracting) the net amount of other revenues and expenses to
(or from) operating income. Subtracting income tax expense from income before income
taxes provides the net income (or net loss) for the period” (Raiborn, 2010, "Chapter 2:
Concepts and Elements Underlying Accounting"). They also...