Riordan Manufacturing Income Statement

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Riordan Manufacturing Riordan Manufacturing Riordan Manufacturing, Inc. is a publicly traded company that produces specialized plastics. Riordan’s history, description, and mission are discussed here. Financial ratio calculations and their general importance in assessing a company’s financial health are described. The differences between two important financial statements, the Balance Sheet and the Income Statement, are also discussed, after which a detailed analysis of Riordan’s Balance Sheet and Income Statement follows. Finally, the necessary software modules for Riordan Manufacturing’s Accounting System are outlined. History and Description Dr. Riordan, a chemistry professor, founded the company in 1991 after obtaining patents…show more content…
over the 3-year period from 2003 to 2005. Total assets dropped $1 million, or 3%, but remain near $35 million. The most notable asset change is the $500,000, or 8%, decrease in accounts receivable. However, cash did increase $200,000 which gives the company the opportunity for business investment in the coming fiscal year (“University of Phoenix,” 2006). A positive trend shows that total liabilities have dropped $1.7 million, which is accounted for by a $2 million, or 42%, decrease in long-term debt. Total stockholder’s equity has increased over $600,000 to $22.1 million, which represents a 3% improvement (“University of Phoenix,” 2006). Riordan has made significant strides in paying off debt and reducing liabilities by 12% and increasing stockholder’s equity in these 3 years. These positives continue to make Riordan Manufacturing a valued company to be sought after by investors. Income Statement Analysis Table…show more content…
Balance Sheet analysis shows the company has increased cash assets, significantly reduced debt, and added to stockholder value which makes Riordan financially strong and desired by investors. Income Statement analysis reveals that Riordan has successfully reduced certain costs, but profits are down from previous years. Riordan Manufacturing’s Accounting System requires a number of software modules which will integrate well and greatly reduce the labor intensiveness and nearly 3-week delay of month-end general ledger

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