Balance Sheet and Income Sheet
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Balance Sheet
The balance sheet of Riordan Manufacturing shows the assets, liabilities, and stockholders equity of the company. Each area provides information that is beneficial to the operation of the plant. Under assets it shows their current assets of cash, account receivable, current portion of notes receivable, inventories, prepaid expenses, and other items. It also shows notes receivable less current portion, investment in joint venture, property, plant, and equipment, intangible assets, and other assets. We will do an analysis of this balance sheet to show what is going on with each area for the fiscal year ending September 30, 2011. We will do an analysis of the balance sheet starting with the assets and then the liabilities and stockholders equity.
Assets
The first area of the balance sheet describes the assets of Riordan Manufacturing which we will cover below next starting with the current assets and the sum of the total current assets. We will show how each area of the assets are calculated to show the sum of the total assets.
Current Assets
The current assets have a cash value of $3,725,406 which is an increase of $918,377 from the year prior. This is always a good sign when a company is in the black with their cash assets. It also shows an increase in the accounts receivable with a cash value of $3,192,094 that is an increase of $496,752, inventories with a cash value of $9,709,611 that is an increase of $1,192,408, and pre-paid expenses and other items with a cash value of $666,591, that is an increase of $264,351. The current portion of the notes receivable was the only area that is lower than last year and a lost. The balance sheet shows that the total current assets are $17,377,957 which is a total of $2,853,167 increase from last years. Other breakdown of the balance sheet is as follow:
Notes Receivable, less current portion (2011) $842,551 – (2010) $936,168
Investment in Joint Venture (2011) 1,734,004 – (2010) 1,609,004
Property, Plant and Equipment – net (2011) 26,366,949 – (2010) 16,658,218
Intangible Assets – net (2011) 904,473 – (2010) 904,473
Other Assets (2011) 183,203 – (2010) 192,845
Total Assets
The total assets for Riordan Manufacturing is (2011) $47,409,137 – (2010) $34,825,498 which is an increase over the year before. An increase in assets of over 36% in only one year indicates both strong and aggressive growth of the company. The biggest change in assets came in the Property, Plant and Equipment category. In 2011, the company had $26,366,949 worth of assets, compared to its 2010 assets, which only numbered $16,658,218 worth. Thats a difference of nearly $10 million, and makes up over 77% of the total increase in assets.
Liabilities and Stockholders Equity
Riordan Manufacturing is a rapidly growing entity. Its total current liabilities are $3,685,152 (2011), including its current portion of the long-term debt, accounts payable, accrued liabilities, and income taxes payable. In 2010, Riordans liabilities were $2,750,057, meaning that Riordans liabilities are increasing, likely due to company growth. The breakdown is as follows:
Current Liabilities 2011 2010
Current Portion of Long-Term Debt
$1,560,959
$474,032
Accounts Payable
1,141,561
1,391,385
Accrued Liabilities
430,477
524,685
Income Taxes Payable
552,155
359,955
Total Current Liabilities
$3,685,152
$2,750,057
The par value of Riordans common stock is currently at $.01. With retained earnings being $4,392,494 (2011), compared to $891,504 (2010), one can see more evidence of continued company growth. Including the value of retained earnings and total stockholders equity, Riordans Total Liabilities and Stockholders Equity have increased from $34,825,498 in 2010 to $47,409,137 in 2011. The breakdown is as follows:
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
Retained Earnings / (Accumulated Deficit)
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
Income Statement – Chaitali
Sales
On Riordans income statement it will show the revenue that they earned by selling their products. The cost of goods sold is the cost of the merchandise that Riordans sold. It also shows the cost of the raw materials. In Riordans gross profit it is how much the company earned from selling their merchandise. In Riordans revenues it is from what they earned by selling its products. Below is Riordans sales, direct cost of goods over the last two years. To find Riordans gross margin we need to subtract the sales from the direct cost of goods sold.
2011 2010
Sales $66,608,660 $56,534,254
Direct of Goods Sold 51,592,470 43,970,250
Gross Margin $15,016,190 $12,564,004
Operating Expenses
The total operating expenses of Riordan Manufacturing has ranged from $4,832,924(2002) to $11,189,262(2008) from 2002