Financial State of Riordan Manufacturing, Inc

Essay by hdcUniversity, Master'sA, April 2007

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Financial State � PAGE �5�

Financial State of Riordan Manufacturing, Inc.


University of Phoenix

BSA 500: Business Systems I



June 2006


Financial State of Riordan Manufacturing, Inc.

The whole is more than the sum of its parts (Encyclopedia of Educational Technology, 2006). Gestalt's theory can very well encompass a business and its processes that make it work. Operations, human resource, finance, etc. help make a business operate. These departments on their own also operate as a whole. The financial state of a business is what keeps a business going. With all the different industries that abound the present economy, it will be important to identify a single business from a certain industry and assess how a financial state can lead to growth or decline for the company. This paper will summarize the financial state of Riordan Manufacturing, Inc. (RMI) as well as identify what accounting system will be beneficial for its operations, what other systems will be connected to the accounting system, and budget analysis.

Financial statements will be analyzed to help present the company's financial condition.

Balance Sheet Analysis for Riordan Manufacturing, Inc.

Economic Overview

The impact of the changing economy must be addressed as to its impact on the markets for plastic bottles, fans, and custom plastic parts. How Riordan will be affected by a strong or weak economy cannot be measured at this time, but the Smart investor knows that financial statements are key to gauging the current and future success of an organization. They can warn of potential problems and help determine the real "worth" of a business (Lermack, 2003).

For every business, there are three important financial statements that must look at; the Balance Sheet, the Income Statement, and the Cash Flow Statement. The balance sheet tells investors how much money...