This website uses cookies to ensure you have the best experience. Learn more

Financial System: Riordan Manufacturing Essay

3181 words - 13 pages

An analysis of Riordan manufacturing financial systemRiordan Manufacturing is a manufacturing company using state of the art technology to create innovative plastic designs which has earned the company international recognition. The company is know for it extreme precision and quality, and has generated different location in the US, China, and San Jose.Riordan Manufacturing is a Fortune 1000 company owned by Riordan with annual revenue in excess of 1 billion dollars. The research conducted for the company is located at the corporate head quarters, which is San Jose. Riordan's major customers are automotive parts manufactures, aircraft manufacturers, the Department of Defense, beverage makers ...view middle of the document...

Riordan tried to make up this loss by decreasing their non-operational expenses, Interest on expense decreased by about $90,000 and taxes were also decreased by about $100,000. Even though there was a decrease in the non-operational expenses, Riordan still fell short in keeping their profit the same over the two years 2004 and 2005. In 2004 the Net Profit after taxes was $1,990,495 but in 2005 the net profit fell by $34,124 making it 1,956,371.Although Riordan increased sales for 2005 the operating expenses (in all categories) were also increased and this led to the Net profit to decrease. Riordan will have to look at their expenses, see how to cut some of the costs and this will eventually lead to the profit to be increased.Balance SheetAnother Riordan Manufacturing financial report is the balance sheet. A balance sheet, according to Investopedia (2004), is a statement showing the current financial position of the company. This report shows the company's assets, liabilities, and stockholder equality. The balance sheet is divided into two sections, the assets as the first section, and shareholder equity as the second section. Assets are what the company needs to operate the business, and the liabilities and equities support the assets.In examining Riordan balance sheet, the total assets equal the total liability and shareholder equity, indicating that their have a balance report. As seen in the report, the company's total assets were up $735,926 in 2005 from the previous year, while the current assets remains even. In the same year the company managed to maintain an even inventory on-hand and increased it receivables by $400,000. Despite these high points in the assets, the cash on hand dropped by $50,000.On the other half of the balance sheet, the financial obligations Riordan owes to others increased by almost $1 millions; the majority attributed to income taxes. This is evident by the numbers shown in the total current liabilities.The company's long term debt for the year 2005 also increased slightly, up by a little over $200,000, contributing to the overall increase in total liabilities. Further-more, the balance sheet shows that Riordan stockholder's equity increase by slightly over $400,000, an indication of management commitment to invest in the company for future growth.Define the problem with Riordan Accounting SystemRiordan Manufacturing has three operating entities which are Georgia, Michigan and California. This includes Riordan's joint venture with the Republic of China as well. These operating entities have their own Finance and Accounting Systems that provides input that is consolidated at its corporate headquarters in San Jose. There are 12 basic components of the Finance and accounting systems they are: General ledger, Accounts payable, Account receivable, Order entry, Procurement, Sales and Purchasing history, Invoicing and Shipping, Payroll, EDI, Bar code reading EDSS (Executive Decision Support Systems), sales and marketing,...

Other Essays On Financial System: Riordan Manufacturing

Riordan Mfg. Strategic Plan Development Essay

1023 words - 5 pages , formulate a plan, execute the plan, and check for results, is the process to eliminate problems (Deming). Through TQM and the implementation of its key concepts the problems of going global are minimized.As Riordan Manufacturing looks to the future, of the company in the global marketplace the organizational leadership must continue to maintain profitability by ensuring the TQM system in place meets the company's mission, vision and strategic objectives

Krispy Krème Doughnuts. A Harvard Business School Finance Case Study

734 words - 3 pages they have greater number of markets to venture into and more ideas to implement.With their good operations and policies:- Having a vertically integrated management and providing the manufacturing plant and the dough, they can keep a check on the quality of their products and hence, have an upper over their competition which is a fragmented market. Besides, they have a delivery system operating under KKM&D which results not only in quality checks

Political Issue in the Bhopal Gas Tragedy

486 words - 2 pages investment had gained widespread good will or so they thought.Whatever UCC contributions to national industrialization goals, the political arguments expediently recast as an archetypal multinational villain, exploiting India's people and resources. As legal actions proceeded in the United States, it became evident to this caricature was designed to gain access to Union Carbide's financial resources.Critics frequently accuse multinational corporations of

The Sogo Shosha

2891 words - 12 pages scale.The sogo shosha always gives priority to their keiretsu before others in terms of their dealings, 'intimate stock, along with financial and business ties, give an unfair advantage to the keiretsu and assures them access at preferred rates to sources of major funds...Group manufacturing firms provide them with assurance id there are no captive customers for raw materials, equipment and technology and are stable sources of manufactured goods and

Financial Distress Prediction Using Z-Score

5279 words - 22 pages bankruptcy.BLASZTK SYSTEM (CANADIAN 1984)This is the only business failure prediction method outlined here that was not developed using multiple discriminate analysis. This system was developed by William Blasztk in 1984. The essence of the system is that the financial ratios for the company to be evaluated are calculated, weighted and then compared with ratios for average companies in that same industry as given by Dunn & Bradstreet. One of this

Amcor - Case Study

4689 words - 19 pages consolidate its position so as to improve its financial viability. This can be owed to the fact that the Australian dollar appreciated against US and Euro currencies. As a result the profits have reduced and no further expansion is possible. The expansion has exposed the company to a greater liquidity risk.So it is advisable for Amcor to avoid any further expansion because it can increase the interest rate risk, liquidity problems and expenditures

Honda Strategic Management

5880 words - 24 pages questions are the basics of strategic planning.2) Strategy implementation is affectation of adequate resources (financial, personnel, time, and computer system support), developing a chain of command or some alternative structure (such as cross functional teams), and posting responsibility of specific tasks or processes to specific individuals or groups. It also involves managing the process. This includes observation results, comparing to benchmarks

E-Business Assignment

4873 words - 20 pages four components of a business model as Rayport and Jaworski (2001) pointed out:1) A value proposition or a value cluster for targeted customers¡ªproducts;2) A marketspace offering¡ªmarket;3) A unique, defendable resource system;4) Financial model.Firstly, a value proposition or a value cluster is one of the most important components of a business model. The construction of a value proposition or a value cluster requires

"Salutary Neglect Prior To 1750 In Colonial America" Question: To What Extent Was Salutary Neglect Present Prior To 1750 In Colonial America?

1249 words - 5 pages tar to build boats. This allowed the colonists to finally be able to change taxes based on their individual financial income. Throughout this time, particularly in the 1600s with the Glorious Revolution, times were economically tough for England. It was, however, quite the opposite in colonial America, where tobacco, cotton, and manufacturing became more widespread than ever before. John Rolfe helped tobacco spread throughout Virginia, cotton

JP Morgan Chase Shifts IT Outsourcing Into Reverse

5453 words - 22 pages S.I.D- 0574220 TO : Chairman, President and C.E.O. of JP Morgan ChaseFROM : IT ManagerSUBJECT : JP Morgan Chase Shifts IT Outsourcing into Reverse.DATE : August 27, 2007.IntroductionJP Morgan Chase is a financial company with $ 1.2 trillion in assets and $ 106 billion in shareholders equity. JP Morgan Chase is one of the oldest financial services firms in the world and operates both banking and non-banking subsidiaries. Both globally and

Main Contributing Factors For The Success Of Hong Kong In Attracting And Sustaining New Start Companies

7203 words - 29 pages as China has the 2nd largest GNP based on purchasing power parity . Geographically, Hong Kong is close to the Guandong Province, a vast manufacturing area. Some believe that Hong Kong's financial and transportation infrastructure, combined with Guangdong's manufacturing capabilities will create a successful trading network."For accessing markets across the Asia - Pacific region, Hong Kong is centrally positioned and networked" . Hong Kong

Similar Papers

Riordan Manufacturing Essay

2595 words - 11 pages IT costs. Workstations are full systems and vary by OS and system type* Connectivity between locations no longer fit business needs. Satellite link is expensive.The financial allotment for this project is $150,000, which has already been earmarked in the FY05 budget. This plan has been constructed and will be implemented as per the directives of the Riordan mission statements. The Riordan Corporation has a very strong company mission statement

Riordan Manufacturing Gap Analysis

2295 words - 10 pages customer-relationship management (CRM) system. The sales department has gone from single salespeople to actual sales teams focusing on servicing the customers. Each team consists of a sales person, product engineering specialist and a customer service rep. The company is hopeful that the new team approach will improve sales (Riordan Manufacturing Scenario, 2007).Over the last year, the company has seen a decrease in their employee satisfaction

Riordan Manufacturing Project Essay

1170 words - 5 pages Service Request PAGE \* MERGEFORMAT 1 Riordan Manufacturing Service RequestIntroductionRiordan Manufacturing Company, a maker of plastic products for several industries, is in need of modernizing its inventory management system. As such, Riordan executives have submitted a service request form to begin the process of creating a program that will serve the entire corporation. In order to integrate an inventory management program, the

Service Request Sr Rm 012 Business Systems Essay

1859 words - 8 pages information system will also increase efficiency of inventory control, manufacturing, and accounting. Additionally, by integrating this system into purchasing and sales, Riordan will see a return of investment in the following areas.•Reduction of work load through automation•Accelerated inventory adjustment and immediate order fulfillment and manufacturing scheduling•Error reduction through less paper handling and data entry&bull