Riordan Manufacturing is a world class manufacture of plastics. The company has three entities operating in the world. The need to consolidate the accounting software for all entities was considered a necessity to have successful accounting totals for the company as an entirety. Riordan's financial statements and the computations of its financial ratios suggest that the company is in a precarious financial state. On a positive note, its current ratio is close to the ideal, which signals that Riordan's management is efficient in managing its cash flows. However, Riordan's quick ratio comes out as very low compared to acceptable standards. With the effective use of the accounting modules the company stands a postive outlook for its own future.
Learning Team A will provide its perspective on the current financial standing of Riordan Manufacturing. The company is a global leader in the manufacturing of plastics. Many of its customers include automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
While its employee base is relatively small at 550, it has projected earnings of $46 million. The company is poised to maintain its good financial standing by focusing on long-term growth through research and design, customer satisfaction and employee engagement. It will also ensure that the resources needed to maintain profitability are available. Riordan Manufacturing recently expanded its operations to China. In light of this and possible future growth, the company needs to ensure a careful analysis is completed on its financial statements at regular intervals.
The company currently has three operating entities located in California, Georgia and Michigan along with a joint venture in China. Each entity uses its own Finance and Accounting Systems. The input from these systems is consolidated into the system at its corporate headquarters in San Jose.