Access the information contained in your selected organization?s balance sheet and income statement to calculate the following: ?Liquidity ratios ?Current ratio ?Acid-test, or quick, ratio ?Receivables turnover ?Inventory turnover ?Profitability ratios ?Asset turnover ?Profit margin ?Return on assets ?Return on common stockholders? equity ?Solvency ratios ?Debt to total assets ?Times interest earned Show your calculations for each ratio. Create a horizontal and vertical analysis for the balance sheet and the income statement. Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions: ?What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company? ?Which users may be interested in each type of ratio? ?What does the collected data reveal about the performance and position of the company? Format your memo consistent with APA guidelines. PLEASE SEE ATTACHMENTS THANKS
Riordan Manufacturing, Inc. Consolidated Balance Sheet Fiscal Year Ending September 30th 2010 2009 Current Assets Cash Accounts Receivable Current Portion of Notes Receivable Inventories Deferred Income Taxes - net Pre-paid Expenses and Other Items Total Current Assets $2,807,029 $2,695,342 $102,976 $8,517,203 $0 $402,240 $14,524,790 $1,511,253 $2,644,307 $117,475 $7,123,790 $0 $458,875 $11,855,700 Notes Receivable, less current portion Investment in Joint Venture Property, Plant & Equipment - net Intangible Assets - net Other Assets Total Assets $936,168 $1,609,004 $16,658,218 $904,473 $192,845 $34,825,498 Current Liabilities Current Portion of Long-Term Debt Accounts Payable Accrued Liabilities Income Taxes Payable Total Current Liabilities Bank Line of Credit Long-Term Debt - less current portion Deferred Income Taxes - net Total Liabilities 2008 2007 2006 2005 2004 2003 $1,040,639 $2,883,964 $107,107 $8,305,690 $0 $279,336 $12,616,736 $1,442,507 $4,544,138 $109,293 $7,919,987 $0 $294,038 $14,309,963 $1,336,319 $4,855,334 $95,538 $7,224,947 $0 $256,903 $13,769,041 $305,563 $6,062,838 $70,825 $7,850,970 $0 $264,896 $14,555,092 $357,216 $5,657,216 $117,888 $7,854,112 $328,832 $328,192 $14,643,456 $85,632 $6,556,160 $13,184 $8,074,880 $349,184 $336,128 $15,415,168 $1,067,953 $1,333,504 $17,767,486 $904,473 $175,314 $33,104,430 $1,102,260 $1,183,504 $18,869,612 $550,590 $106,721 $34,429,423 $1,124,755 $1,058,504 $18,424,594 $550,590 $108,899 $35,577,305 $986,627 $858,504 $24,510,830 $550,590 $107,821 $40,783,413 $256,583 $283,504 $19,114,830 $329,405 $52,768 $34,592,182 $177,408 $133,504 $18,511,360 $336,128 $54,400 $33,856,256 $431,104 $139,136 $19,205,120 $395,136 $51,840 $35,637,504 $474,032 $1,391,385 $524,685 $359,955 $2,750,057 $484,894 $1,636,923 $617,276 $99,113 $2,838,206 $497,480 $1,694,523 $638,997 $243,440 $3,074,440 $495,515 $1,783,708 $631,108 $855,504 $3,765,835 $538,046 $3,930,399 $1,390,648 $1,351,775 $7,210,868 $1,219,258 $3,650,073 $1,350,144 $754,619 $6,974,094 $1,106,304 $3,573,248 $1,350,144 $6,029,696 $1,737,728 $2,676,096 $1,257,344 $164,864 $5,836,032 $295,865 $1,006,955 $825,629 $4,878,506 $477,069 $1,354,461 $917,366 $5,587,102 $598,423 $1,719,851 $917,366 $6,310,080 $109,528 $1,926,618 $1,067,449 $6,869,430 $100,836 $2,278,481 $2,485,354 $12,075,539 $253,727 $2,763,752 $2,485,354 $12,476,927 $487,936 $2,535,552 $3,107,072 $12,160,256 $245,760 $4,793,856 $3,283,328 $14,158,976 (Stated par value is $.01. 20,000,000 shares authorized. Issued and Outstanding 15,801,332 net of treasury shares.) $29,055,488 $29,055,488 $29,055,488 $29,055,488 $29,055,488 $29,055,488 Other Accummulated Comprehensive Losses Retained Earnings /(Accummulated Deficit) Total Stockholders' Equity $891,504 $29,946,992 ($1,538,160) $27,517,328 ($936,145) $28,119,343 ($347,613) $28,707,875 ($347,614) $28,707,874 ($6,940,233) $22,115,255 $29,055,488 ($202,496) ($7,156,992) $21,696,000 $29,491,328 ($163,840) ($7,848,960) $21,478,528 Total Liabilities and Stockholders' Equity $34,825,498 $33,104,430 $34,429,423 $35,577,305 $40,783,413 $34,592,182 $33,856,256 $35,637,504 Assets Liabilities and Stockholders' Equity Common Stock Riordan Manufacturing, Inc. Consolidated Balance Sheet Fiscal Year Ending September 30th 2011 Assets Current Assets Cash Accounts Receivable Current Portion of Notes Receivable Inventories Prepaid Expenses and Other Items Total Current Assets Notes Receivable, less current portion Investment in Joint Venture Property, Plant and Equipment - net Intangible Assets - net Other Assets Total Assets $3,725,406 3,192,094 Bank Line of Credit Long-Term Debt - less current portion Deferred Income Taxes net Total Liabilities Common Stock Stated par value is $.01. 20,000,000 shares authorized. Issued and Outstanding 15,801,332 net of treasury shares. Retained Earnings / (Accumulated Deficit) $2,807,029 2,695,342 84,255 102,976 9,709,611 8,517,203 666,591 $17,377,957 402,240 $14,524,790 $842,551 $936,168 1,734,004 1,609,004 26,366,949 16,658,218 904,473 183,203 $47,409,137 904,473 192,845 $34,825,498 Liabilities and Stockholders' Equity Current Liabilities Current Portion of $1,560,959 Long-Term Debt Accounts Payable Accrued Liabilities Income Taxes Payable Total Current Liabilities 2010 1,141,561 430,477 $474,032 1,391,385 524,685 552,155 359,955 $3,685,152 $2,750,057 $114,759 $295,865 9,500,741 1,006,955 660,503 825,629 $13,961,155 $4,878,506 $29,055,488 $29,055,488 4,392,494 891,504 Total Stockholders' Equity $33,447,982 $29,946,992 Total Liabilities and Stockholders' Equity $47,409,137 $34,825,498 Riordan Manufacturing, Inc. Income Statement For the 12 months ending September 30th Fiscal Year Ending September 30th 2010 Sales 2009 2008 2007 2006 2005 2004 2003 2002 $56,534,254 $43,970,250 $12,564,004 $50,468,000 $39,345,460 $11,122,540 $61,727,010 $48,324,660 $13,402,350 $61,127,960 $42,462,480 $18,665,480 $60,642,820 $41,843,546 $18,799,274 $50,823,685 $42,037,624 $8,786,061 $46,044,288 $37,480,050 $8,564,238 $43,418,370 $34,517,604 $8,900,766 $39,481,276 $30,953,320 $8,527,956 $1,265,348 $1,152,125 $1,112,247 $962,627 $4,674,293 $125,050 $9,291,690 $3,272,314 $1,405,942 $1,152,125 $1,208,964 $1,069,585 $5,193,659 $191,244 $10,221,519 $901,021 $1,528,198 $1,144,983 $1,422,311 $1,125,879 $5,770,732 $197,159 $11,189,262 $2,213,088 $1,455,427 $1,122,235 $1,376,874 $1,093,086 $5,642,402 $198,150 $10,888,174 $7,777,306 $1,212,856 $1,099,378 $1,359,876 $1,061,249 $5,700,306 $685,070 $11,118,735 $7,680,539 $1,012,974 $343,445 $1,139,688 $911,676 $1,706,953 $628,505 $5,743,241 $3,042,820 $920,886 $349,937 $1,095,854 $828,797 $1,524,066 $598,576 $5,318,116 $3,246,122 $1,085,459 $329,980 $1,033,357 $868,367 $1,085,459 $477,602 $4,880,224 $4,020,542 $1,105,476 $312,612 $1,085,459 $1,065,994 $829,107 $434,294 $4,832,942 $3,695,014 $121,533 $719,909 $841,442 $149,962 $198,225 $348,187 $134,816 $486,879 $621,695 $157,605 $1,711,007 $1,868,612 $179,312 $1,689,719 $1,869,031 $143,175 $943,274 $1,086,449 $230,221 $1,025,406 $1,255,627 $217,092 $1,293,173 $1,510,265 $197,406 $1,189,186 $1,386,592 $2,430,872 Direct Cost of Goods Sold Gross Margin $552,834 $1,591,393 $5,908,694 $5,811,508 $1,956,371 $1,990,495 $2,510,277 $2,308,422 Operating Expenses Sales, Marketing & Other Depreciation Quality Assurance Research & Development General & Administrative Machining & Systems Total Operating Expenses Profit Before Interest & Taxes Non-Operating Expenses Interest Expense Taxes Total Non-Operating Expenses Net Profit After Taxes Riordan Manufacturing, Inc. Income Statement For the 12 months ending September 30th 2011 Sales Direct Cost of Goods Sold Gross Margin Operating Expenses Sales, Marketing & Other Depreciation Quality Assurance Research & Development General & Administrative Machining & Systems Total Operating Expenses Profit Before Interest & Taxes Non-Operating Expenses Interest Expense Taxes Total NonOperating Expenses Net Profit After Taxes 2010 $66,608,660 $56,534,254 51,592,470 43,970,250 $15,016,190 $12,564,004 $1,328,615 $1,265,348 1,378,616 1,151,176 1,152,125 1,112,247 1,039,637 962,627 4,954,751 4,674,293 143,808 125,050 $9,996,603 $9,291,690 $5,019,587 $3,272,314 $604,616 1,104,309 $121,533 719,909 $1,708,925 $841,442 $3,310,662 $2,430,872 Access the information contained in your selected organization's balance sheet and income statement to calculate the following: Liquidity ratios o o Acid-test, or quick, ratio o Receivables turnover o Current ratio Inventory turnover Profitability ratios o o Profit margin o Return on assets o Asset turnover Return on common stockholders' equity Solvency ratios o Debt to total assets o Times interest earned Show your calculations for each ratio. Create a horizontal and vertical analysis for the balance sheet and the income statement. Write a 350- to 700-word memo to the CEO of your selected organization in which you discuss your findings from your ratio calculations and your horizontal and vertical analysis. In your memo, address the following questions: What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company? Which users may be interested in each type of ratio? What does the collected data reveal about the performance and position of the company? Format your memo consistent with APA guidelines
