Riordan Manufacturing Case Study
explanatory Essay
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 https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/RioMfgHome002.htm Internet Source: http://www.rfp-templates.com/RFP-Templates/Accounting-Software-RFP-Template.html 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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- Riordan Manufacturing Caseanalytical essayExecutive Summary Riordan Manufacturing “is a plastics manufacturer employing 550 people with projected annual earnings of $46 million.” (Riordan, 2004) The company headquarters is located in San Jose, California and production sites within Pontiac, Michigan and Albany, Georgia. The Michigan location is responsible for the injection molding process, creating of dies, custom fabrication, design and coloring of plastics. The Georgia site creates unique plastic bottles as specified by the customer.
In this essay, the author
- Explains that riordan manufacturing is on the cutting edge of dynamic plastic injection molding and needs to create an effective and efficient computer system utilization that will expedite the processes between each department and employee.
- Analyzes how riordan manufacturing's problems stem from poor planning, lack of global schematics, and limiting the usability of a global network.
- Argues that riordan manufacturing's current inventory control system has too much room for human error as most of the data entry at the beginning is done manually.
- Opines that riordan needs to look into a supply chain management business application that will make their process efficient and up to date.
- Explains that a buyer generates an order for this material and assigns the part number.
- Explains that once the product is shipped, a "post goods issue" is performed to relieve the inventory from stock and account receivables can bill the customer.
- Explains the logical components for maintaining a successful web presence (excluding hardware and web applications).
- Explains that the above can be used to ensure the website stays safe for both the company and customers using it.
- Explains that the cost of implementing the improvement would be recuperated from the reduction of receiving hours, raw material inventory, over production and shipping requirements.
- Describes riordan manufacturing as a plastics manufacturer employing 550 people with projected annual earnings of $46 million.
- Explains that the raw materials area clerk will verify the material and quantity match the purchase order and verify goods received and payment can be made to the vendor.
- Explains that communication needs to be improved between sites and an extranet connection for customers to access the company.
2156 wordsRead More - Budget Analysisexplanatory essayMarshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
In this essay, the author
- Explains that the company's budget is a guideline in planning and committing costs in order to meet tactical and strategic goals.
- Explains marshall, mcmanus, viele, v.f. (2003). accounting: what the numbers mean.
- Explains that single-period and rolling budgets have advantages and disadvantages that may make one budget time frame better than another. budgets are planned in advance in order for a company to operate profitably and less so to have "actual results equal budgeted results."
- Explains that the budget process starts with a sales forecast that describes expected revenues from groups of products.
- Explains that there are many assumptions that planners, economists and managers can make regarding the budgetary hierarchy and expected forecasts.
- Explains that a company's budget can be an important method of analyzing its performance. it addresses costs and spending as well as the activities within the organization that increase revenue and profits.
- Explains that standards for controlling activities such as quality, inventory, equipment usage, and service can be developed by using historical or statistical measures.
- Explains that a budget control mechanism analyzes and measures the results or success of budgetary spending to find discrepancies in both the budget and the quality of products and services produced.
- Explains that managers are held accountable for both favorable and unfavorable variances, and how they reflect overall performance in organizational goals.
- Explains that their department approved the major iteration of a system that converts documents from one format to another, and exposes thousands of document resources for consumption through online and cms tools.
1842 wordsRead More - Statement of Purpose for a Ph.D in Accountingexplanatory essayI am interested in conducting research and teaching in managerial accounting, auditing and assurance services and accounting information systems. In particular, I am interested in exploring the role of accounting information systems in decision making, internal control, and auditing. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding accounting, accounting information systems, information technology, managerial accounting, as well as gain a general economic and management perspective.
In this essay, the author
- Explains that they are applying for admission to the ph.d. program in accounting because they want to pursue a career in the research and teaching of accounting.
- Explains that they are interested in conducting research and teaching in managerial accounting, auditing and assurance services and accounting information systems.
- Opines that an accounting phd would enable them to channel their quantitative and conceptual skills in analyzing accounting issues opening new opportunities in research.
- Explains that many applicants could have applied to programs in less lucrative and/or competitive fields, like economics, psychology, finance or statistics. they need to convince the faculty that they are pursuing their purpose because they're truly interested in the subject material in their chosen field.
- Explains that their background in accounting, management, information systems, business administration, and work experience has prepared them for such a career.
- Explains that they have designed, programed, implemented and trained users in accounting systems in areas such as general ledger, payroll, inventory control, personnel management, etc.
- Argues that if you know enough about accounting to ask interesting questions, you can pull those facts together into a story that answers those questions.
- Describes how they pursued a phd in accounting with the same commitment, dedication, hard work and tenacity. they describe themselves as an emotional mature, smart, self-starter, team player, and hard-working person.
- Explains that being a phd student or faculty member involves spending time alone with your computer, reading, writing, trying to find something new to tell people who already know.
- Explains that their accounting, information technology, and business administration combined with their long work experience have prepared them for the monumental task. they are motivated to work hard, spend long hours on computers and complete projects on time.
- Describes how they have exhibited tenacity in their studies towards an mba degree, which they completed in may 2013.
- Explains that if you have conducted research, you can address many of the above questions. a research project with a professor led to your interest in accounting.
- Explains that they conducted a thesis titled "network programming: a case study with livestock information management system (lims)" as part of the requirement for the master of science in information science at addis ababa university.
- Explains that the time limitation on each assignment has taught them to plan well, work systematically and keep their reports up-to-date on daily basis. their expertise in spreadsheets, databases, word processors and presentation packages serve them well.
- Opines that if one lacks a strong math background or work experience, faculty will think more of one. this shows self-awareness and understanding of what the job requires.
- Explains that as an older student, they may lack the vigor of youth, but they come with determination to succeed overcoming whatever they lack with extra hard work and tenacity.
- Explains that they are applying to the michigan state university's accounting phd program because of its comprehensive program, internationally renowned faculty, and diverse environment.
- Explains that doctoral program admission rates are extremely low in accounting and other management fields, but there are other applicants who are similarly qualified. use your statement of purpose to draw the only possible conclusion.
- Explains that they have had a lifetime of experience working in not-for-profit, research, insurance and educational environments. they have gained solid grasps of accounting, information technology, databases management, procurement, and insurance.
- Opines that if accepted into the msu accounting phd program, they would be a positive addition to the program.
- Opines that teaching and training the next generation of business leaders is one of the most fascinating roles a business professor could hope to achieve.
2033 wordsRead More - Accounting Fraud, the Investor and the Sarbanes Oxley Actexplanatory essayRomney, Marshal, and Paul Steinbart. Accounting Information Systmes. 10th ed. Upper Saddle River: Pearson Education, 2006. 193-195.
In this essay, the author
- Explains that the us government amended the sarbanes oxley act of 2002 to mitigate these problems.
- Explains that when a large company commits accounting fraud and is caught, the implications from their actions are very far reaching.
- Opines that accounting fraud is not directly affected by the bankruptcies. millions of americans who were heavily invested through their 401(k) retirement plans had to postpone retirement and rethink their investment strategy.
- Explains how executives can "cook the books" to make a company look more profitable and stable than it actually is.
- Explains that the sarbanes-oxley act of 2002 was enacted to protect investors by fighting corporate crime and improving corporate governance.
- Explains that the board of directors in a company must have at least five financially literate members appointed for five-year terms. the audit lead or coordinator partner and reviewing partner must rotate every five years.
- Explains that the act protects whistleblowers who come forth with incriminating information about activities within their company, especially with the increasing prosecution following sarbanes-oxley.
- Explains that sarbanes-oxley provides certain blackout periods for stock trading in which officers and directors cannot purchase or sell stock. profits resulting from sales in violation of this are recoverable by the issuer.
- Explains the sec's control over sarbanes-oxley, including the ability to restrict people from serving on the board of directors if they have a securities fraud issue in their background.
- Opines that the most challenging area for companies is the saving of all communications and the creation of transparent and auditable systems for recording transactions.
- Explains that sarbanes-oxley is intended to give the investor back some measure of confidence with the internal accounting practices of the organization.
- Explains that since the act has been put into place, nothing related to financial reporting is taken for granted. most companies have implemented better corporate governance procedures. audit committees and boards of directors are now more engaged in their responsibilities.
- Opines that companies are more often identifying and modifying control shortages before misstatements happen on their financial statements.
- Explains that companies will be forced to put into place systems and processes to track and save correspondence. they will often need to start new or serious changes on their it accounting systems to meet the standards for sarbanes oxley.
- Opines that training employees on new systems, processes, and procedures is expensive and should be larger up front. they can use their trained employees to train new employees in future years.
- Explains that applying sarbanes-oxley compliance in an organization will take a significant amount of time for involved employees. documenting processes will only need to be modified down the road.
- Opines that organizations must be prepared for the controls that will be given up to their systems when following sarbanes oxley.
- Opines that companies need to show due diligence to protect themselves from accounting issues. the higher the compliance checks and balances are and the more secure processes are in place, the better chance the company has to defend itself.
- Opines that sarbanes-oxley is only effective if the general idea of the organization leans toward ethical business practices.
- Opines that whistle blower protection should be strong and understood in sarbanes-oxley to help promote ethical standards. this will allow employees to discuss issues without fear of retribution.
- Opines that sarbanes-oxley is not an option for publicly traded companies. the company must decide whether to implement the minimum to get by with compliance or do you put in place a strong system to fully protect and improve current accounting practices.
- Opines that sarbanes oxley compliance is not an overnight transition. companies need to take a look at the needs of their organization, their current structure, and put in place what will work best for their investors, employees and company.
- Describes the contents of the book, "ethics in auditing".
1981 wordsRead More - Toys R Us and Subsidiariesargumentative essayMeigs, Robert F.; Williams, Jan R.; Haka, Susan F.; Bettner, Mark S., (1999) Accounting. p 619.
In this essay, the author
- Explains that toys "r" us, inc. and subsidiaries authorized 650 shares of par value $.10 common stock, of which 300.4 were issued, 12.6 were held in treasury stock leaving 287.8 shares issued and outstanding.
- Explains that it is important to choose carefully the ratios to be analyzed to ensure that there is relevance between the data and the conclusions drawn from it.
- Explains that the company's short term liquidity of 1.24 in 1997 does not make it a desirable credit risk.
- Explains that operating cash flow is cash from operations/current liabilities, which is low, but without comparable ratios for industry peers, it is difficult to evaluate.
- Explains that capital structure describes the mix of equity and liability used to finance the assets employed in a company.
- Explains that the company uses the indirect method of preparing its cash flow statement beginning with net earnings and adjusting for expenses, revenues, and non-operating gains and losses.
- Analyzes the company's financial analysis, which focuses on short-term liquidity, profitability, capital structure, leverage, and solvency. although inventory comprises a high percentage of their current assets, they are successfully beating industry averages for inventory turns.
- Explains that ernst & young, llp, independent auditors for toys "r" us inc. and subsidiaries issued an unqualified opinion on the company's financial statements and consolidated results of operations and cash flows for the three years ending february 1, 1997, february 3, 1996 and january 28, 1995.
- Explains net return on assets (roa) is measured by dividing operating income by average total assets to determine whether the company is earning a reasonable return.
- Compares toys "r" us' long-term debt/equity ratio with the industry standard, and explains that the company has less debt.
- Describes meigs, robert f., williams, jan r, haka, susan f, and bettner, mark s.
1363 wordsRead More - Accounting and Financeexplanatory essayMarshall, D., McManus, W., & Viele, D. (2004). Accounting: What the numbers mean. [University of Phoenix Custom Edition e-text]. New York, NY: McGraw-Hill Companies.
In this essay, the author
- Explains that accounting and finance are the primary tools for reducing business problems and opportunities to a common denominator.
- Explains that accounting concepts or principles have been developed over the years, and that the financial world generally follows and accepts them.
- Explains that the financial equation (assets = liabilities + equity) is the mechanical key to the entire financial accounting process and the basis to many of these principles.
- Explains the cost principle and objectivity, which are related to transactions.
- Explains that the american heritage dictionary of the english language, fourth edition, is available at answers.com.
- Explains that accounting and finance deal with money and assets, but they are categorically different concepts. accounting has clearly defined guidelines, rules, and regulations, while auditing is a separate discipline.
- Analyzes the relationship between the balance sheet and the income statement.
- Explains the accounting period, when an entity reports its financial statements on a yearly basis. the accrual concept states that expenses or sales are listed at the point of sale or when the ownership changes hands.
- Explains the theories, assumptions and principles of financial statements, including consistency, full disclosure, materiality, and conservatism.
- Explains that accounting and finance are important terms to grasp while reading this essay. accounting involves making value judgments about the assets and liabilities a business owns, while accurately measuring how much profit or loss has been made.
- Explains that ballast, myers, and marcus a. (2004). fundamentals of corporate finance, fourth edition.
1550 wordsRead More - The Purpose of Accountingexplanatory essayMain view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
In this essay, the author
- Explains that the purpose of this document is to describe the nature, purpose, and scope of accounting. accounting involves in preparing financial documents of an entity by analyzing, verifying, reporting this records.
- Explains the main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business.
- Explains that the accounting of business is used to record and measure the size of the business, in terms of gains and losses on monthly, quarterly semi-annual and annual basis.
- Explains that accounting in business follows a particular process either in small scale business or large scale businesses with step by step process.
- Explains that in management, the accountant gives advices to individuals and business people, how to manage their business. account information is considered and some business decisions are taken in both financial and non-financial departments.
- Explains that tax accounting is involved in filing the tax returns of the company individually, based on their income, and they need to pay the percentage accordingly to tax rules. taxation on business is another source of income to meet and satisfy the necessary needs.
- Explains that financial accountant prepares monthly, quarterly, semi-annual, and annually financial reports to see the business development. these reports are useful for creditors to decide whether to invest in the company.
- Explains that a budget analyst develops, executes and analyzes budgets for public, private, and nonprofit organizations.
- Explains that auditors audit accounts and verify that all financial reports and statements are correct. in case of unmatched consequences, the organization needs to give explanation on the misrepresentations of wrong statements.
- Explains that accounting plays a major role in developing and growth of the business. financial standards are expected as the complexities of business growth and expansion.
632 wordsRead More - Enterprise Resources Planning (ERP) Implementationexplanatory essayStair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.
In this essay, the author
- Explains that effective communication is critical to erp implementation. management of communication, education, and expectations are critical throughout the organization.
- Opines that project management should be formally defined in terms of milestones and human resources. the scope must be clearly defined and be limited.
- Explains that erp implementations fail due to unrealistic expectations of benefits and return on investment. the erp software only calculates the benefits overstating.
- Explains that the essay will discuss enterprise resources planning (erp) implementation, specifically in the factors which can lead to successful and unsuccessful erp implementation.
- Explains that erp is an integrated software package composed of standard functional modules that can be adapted to the specific needs of each customer.
- Explains that implementation of an erp system is an extensive challenge, the firm's performance will get worse before it gets better and firms are expected to encounter resistance throughout the stages of erp implementation.
- Opines that the erp team should consist of the best people in the organisation. the erp project should be their top priority and their workload must be manageable.
- Opines that management change is important, including people, organisation, and cultures. a good management is the management which accepts the changes. bradley corporation implemented an erp system.
- Explains that the major mistake in the failure of the erp implementation is to short-cut the critical events to cut down the time.
- Explains that erp has become more popular in the software which used to help the business actives including order tracking, customer service, finance, inventory control, and human resources.
- Cites falkowski, g., pedigo, p, smith, b. & swanson, d. (1998), °a recipe for erp success, beyond computing. nah, f.
- Cites gary h., light, b. and gibson, n. (1999), °a critical success factors model for enterprise resource planning implementation.
- Cites sam d. (2000), °erp system flushes bottleneck at bradley corp., midrange systems, vol.
1634 wordsRead More - Essay On Challenges Of Accountingexplanatory essayAccounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
In this essay, the author
- Explains that accounting dates back as far as the first centuries, is the language of business. accounting has also changed many times through out the centuries.
- Explains how technology has changed many aspects of business and accounting practice and created many new opportunities to accounting professionals.
- Explains that the international accounting standards committee (iasc) was founded in 1973 and changed its name to ifrs international financial reporting service in 2003.
- Explains that increasing competitions and high expectations of the companies have put high pressure on accountants. setting business plans, goals and providing guide to achieve them with less cost and most profit.
- Explains that technology has added many advantages and competitions to the accounting field. firms and accountants have made more efficient and effective decisions with these new inventions.
1025 wordsRead More - Computerised Accounting Systemexplanatory essayThe following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. Other aspects such as the current state of the system and the interactions with other systems and the future of the system will also be covered in this paper.
In this essay, the author
- Explains that the essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning.
- Explains that every system interacts with other systems external to its boundary, such as marketing, human resources, customer relationship, supply, deliveries, or inventories.
- Explains that business uses computerised account systems because it is easier for accountants to access and provide financial information to other departments or managers as the information is easy accessible from the system.
- Explains that accounting is a system that people have been using for thousands of years to keep and track their financial accounts and other financial information.
- Explains that all systems consist of three parts, its inputs, process and the output. an organisation may have a different system in each of their departments such as marketing, human resources, production purchasing, etc.
- Explains that computerised accounting systems are vulnerable to viruses, power failures, hacking, and theft. the accountant has to ensure that all data is correctly entered into the system.
- Explains that a computerised accounting system interacts with other systems, such as the marketing department and the human resources system. enterprise resource planning integrates internal and external information of different systems.
- Explains the benefits of cloud computing, such as the ability to access real-time data without having to install or have the hardware needed for it.
- Explains that bellis, m., and brooks, c. (2012). what is accounting?.
- Explains the advantages and disadvantages of computerized accounting. perry, b., 2005, organisational management and information systems.
1303 wordsRead More