Riordan Finance and Accounting

4108 Words Nov 20th, 2008 17 Pages

Riordan Manufacturing Finance and Accounting System
University of Phoenix

Ms. Deborah Webb
Week 6 Team Assignment
17 November 2008
Investment in the rubber and plastics industry requires serious analysis of a number of key corporate behaviors. To evaluate Riordan’s Finance and Accounting Systems, knowledge of their industry and line of business is necessary. Economic influences affecting their operations and business strategy must be considered as well. An examination of Riordan’s accounting system and modules is provided followed by calculations of their liquidity, profitability and activity ratios. The pecuniary data, along with historical information, is evidence to their
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This suggests that financing to expand operations, replace equipment, or other purposes, should be secured soon. The present monetary policy of the Federal Reserve is contracting and decreasing the total money supply to stave off inflation. High oil prices, the weaker dollar and decelerating labor productivity are contributing to rising inflation. The inflation rate forecast is estimated at a rate less than 3.00%; however, the Federal Reserve will work to limit inflation in combination with a strong retail market. The unemployment rate was only 5.50% last year and will improve slightly to 5.20% in both 2005 and 2006. A large trade deficit in the U.S. trade balance will lead to the dollar/euro currency exchange rate of 1.25 dollar to the Euro. This data indicates positive economic conditions for Riordan. Opportunities to leverage relatively low interest rates into new investments will allow Riordan to enter new markets and increase productivity. This forecast provides the basis to meet the firm’s sales goals.
Riordan Manufacturing’s Accounting System and Modules Each Riordan location has separate, customized financial and accounting systems to accommodate each location. However, the current systems are expensive and time consuming to code, test and patch. These systems have integration and compatibility problems and were not developed to function together. Current financial software has become extremely sophisticated. Enterprise
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