Riordan Manufacturing: Financial Analysis

1921 words - 8 pages

Riordan Manufacturing PAGE \* Arabic \* MERGEFORMAT 2
Running head: RIORDAN MANUFACTURINGRiordan Manufacturing: Financial AnalysisUniversity of PhoenixBSA 500 - Business Systems IAbstractThis paper provides comprehensive information about the overall financial status of Riordan Manufacturing; a detailed analysis of the corporation's current accounting information systems; and an overview of the information and management systems that should have connections to the main accounting information system. In addition, the end objective of this report is to provide a suggested course of action for Riordan Manufacturing and the company's management accounting information system.BackgroundRiordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. With state-of-the art design capabilities, we create innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. With facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, we have the capacity to fulfill your unique needs. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise. (Apollo Group, Inc., 2009)The company was founded by Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic substrates. Sensing the commercial applications for his patents, Dr. Riordan started Riordan Plastics, Inc. in 1991.Initially, the company's focus was on research and development and the licensing of its existing patents, but in 1992 Dr. Riordan obtained venture capital which he used to purchase a fan manufacturing plant in Pontiac, MI. At that time, the company's name was changed to "Riordan Manufacturing, Inc." In 1993, the company expanded into the production of plastic beverage containers when it acquired a manufacturing plant in Albany, GA.The company's most recent expansion took place in 2000 when it opened its operations in China. At that time, the entire fan manufacturing operation was moved from Michigan to China and the Pontiac, MI facility was retooled for the manufacture of custom plastic parts. (Apollo Group, Inc., 2009)Finance and AccountingThe Riordan Financial and Accounting systems allow the corporate headquarters to monitor sales and expenses on all their operations. All the operating entities manage their own Financial and Accounting systems, but all field offices report to the corporate office. To ensure effective monetary communications with all Riordan operations, the corporate headquarters has established a reporting system. The basic components of each system are: General Ledger; Accounts Payable; Accounts Receivable; Order Entry; Sales and Purchasing History; Procurement; Invoice and Shipping; Payroll; Financial Reporting; EDI (San Jose); Bar Code Reading (San Jose); and EDDS (San Jose) (Apollo Group,...

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