Riordan Manufacturing Case Study

explanatory Essay
1520 words
1520 words

Riordan Manufacturing Financial State I. Background Riordan Manufacturing was founded by Dr. Riordan, a professor of chemistry who obtained several patents qualified to processing polymers into high tensile potency plastic substrates. Riordan Manufacturing is a worldwide plastics manufacturer. The company employs 550 people with probable earnings of $46 million. The company is completely owned by Riordan Industries, a Fortune 1000 enterprise with revenues in surplus of $1 billion. The company products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities I Hangzhou, China. The company’s research and development is done at the corporate headquarters in San Jose. Riordan’s major customers are automotive parts manufactures, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. II. Riordan Accounting System Riordans accounting system consists of two parts. The first is the Software used to keep track of the financial data. The second system is primarily for the manufacturing operation and ties directly into the finances. The manufacturing operation at Riordan is dependent upon the combination of these two systems. Riordan Accounting Software Modules Riordan Manufacturing has the following software modules in operation within its accounting system. These modules assist managers in the evaluation of the company’s financial condition and operating performance during a given period. The period evaluated may be monthly, annual, or multiyear. Riordan accounting group has implemented these modules to better report their financial infor... ... middle of paper ... ...omestic automakers to cut costs. Continued sizable increases in the costs of providing employee benefits are highly likely to continue. Despite this particular issue related to costs, the stable economy described in the forecast presented above should provide for the basis to at least meet the firm’s sales goals. References Apollo Group, Inc. (2006). Riordan Manufacturing. Home. Retrieved November 28, 2007. BSA/500 Internet Source: Schroeder, Carol L. Savvy Store Solutions; November 2005, Special Edition, p22-24, 3p Raiborn, Cecily A. Watson, Stephanie F. Survey of Accounting. Chapter 1: An Introduction to the Role of Accounting in the Business World. Copyright 2003 John Wiley & Sons, Inc.

In this essay, the author

  • Explains that riordan manufacturing is a worldwide plastics manufacturer. the company employs 550 people with probable earnings of $46 million.
  • Explains that riordan's products include plastic beverage containers, custom plastic parts, and plastic fan parts.
  • Explains riordan's accounting system consists of two parts. the first is the software used to keep track of the financial data and the second is primarily for the manufacturing operation.
  • Explains accounting software and modules: general ledger (gl)accounts payable (a/p)transaction processingvendor master filemonth and year end closingpurchasing controlscontrol reportsdata inputfinancial statementspayables analysischeck writingpayrollcontrol reportsemployee files
  • Describes customer master filepayroll check writingcustomer relationship management (crm)control reportsinvoicingfinancial reportscash receiptsdebt collectioninventory management control/assembly systemsdata input and cost distribution
  • Explains how order tracking, shipping, invoicing, cost calculation, distribution, and bar code reading are used in manufacturing management.
  • Explains that riordan manufacturing system is linked to the accounting and finance systems. managers are able to measure the reporting costs of production, marketing, preparing budgets, and verifying that units adhere to their budget.
  • Describes the riordan manufacturing income statement for the 12 months ending september 30, 2005-2004.
  • Describes the operating expenses, including sales, marketing, and other expenses.
  • Describes the non-operating expenses, net profit after taxes and gross margin of sales. revenue has increased 10.38% from $46,044,288 to $50,823,685.
  • Explains that total operating expenses have risen by 7.99% from $5,318,115 to $5.743,241. profit before interest & taxes has declined by 6.26% from $3,246,122 to $3.042,820.
  • Explains that riordan's profit margins have declined year over year by 1.71% and calculated into sales have decreased from 4.32% of sales in 2004 to 3.85% in 2005.
  • Describes riordan manufacturing, inc.'s current assets, including cash, accounts receivables, notes, inventory, and deferred income taxes.
  • Describes the assets, liabilities, and stockholders' equity, as well as the current portion of long-term debt.
  • Describes the current liabilities and the long-term debt.
  • Describes the total stockholders' equity, liabilities, and equity. the current portion of notes receivable is $70,825.
  • Explains that deferred income tax is at zero dollars which is down from $328,832 in the past year.
  • Explains riordan manufacturing's financial ratios, including current assets, liabilities, debt ratio, and long-term debt.
  • Explains that riordan manufacturing has a current ratio of 2.08 which indicates that the company would have little difficulty meeting its short-run obligations.
  • Explains that riordan manufacturing, inc. is well positioned for the future. economic growth is expected to be steady, although at a lower rate than 2004 level of 4.40% growth in real gdp.
  • Explains that riordan manufacturing is a company owned by apollo group, inc.
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