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Riordan Manufacturing Financial State

Submitted by legacysec on July 15, 2008

Category: Business
Words: 1305 | Pages: 6
Views: 139
Popularity Rank: 79,662
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Running head: RIORDAN MANUFACTURING

Riordan Manufacturing: Financial State

University of Phoenix
BSA/500 – Matthew Berg
October 8, 2007

Running head: RIORDAN MANUFACTURING INC
Riordan Manufacturing
Abstract:
Riordan Manufacturing is a leading provider when it comes to plastic manufacturing. Founded by Dr. Riordan in 1991 under the name Riordan Plastics, from the start Dr. Riordan goals were originally aimed towards examining and inventing patents. However, as time past during the exploration of his business endeavor, Dr. Riordan acquired a manufacturing plant which enabled the ultimate creation of plastic manufactured goods. Therefore, altering the company’s name to Riordan Manufacturing.
Aspects of Riordan’s profitability such as assets, liabilities, sales, non-operating and operating expenses must be accounted for; consequently financial statements such as the Balance Sheet and Income Statement are used to perform analysis of business performance. Through analysis of Riordan’s Balance Sheet, their inventory turn over rate seems to be exceptionally high. With that said, Riordan’s inventory remains in good standing due to consumer purchase power and longevity of manufactured goods. On the other hand, the Income Statement confirms the increase in Riordan’s net profit of about 1.72 % from 2004 to 2005. This is primarily due to an increase in sales and decrease in non-operating expenses from 2004. As years progress, Riordan will use previous years’ Balance Sheets and Income Statements as guidelines for enhancing business processes and obtaining a higher net profit.

History
“Riordan Manufacturing, Inc was founded by Dr. Riordan, a professor of chemistry who had obtained several patents relative to processing polymers into high tensile strength plastic substrates.” (Riordan Manufacturing, n.d.) The company is an industry leader...

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