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    Riordan Manufacturing, Inc. Ratios

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    Using the attached Balance Sheet and Income Statement calculate the following ratios:

    1) Liquidity ratios

    a) Current ratio

    b) Acid-test (quick) ratio

    c) Receivables turnover

    d) Inventory turnover

    Riordan Manufacturing, Inc.
    Consolidated Balance Sheet

    Fiscal Year Ending
    September 30th
    2005 2004

    Assets
    Current Assets
    Cash $305,563 $357,216
    Accounts Receivable $6,062,838 $5,657,216
    Current Portion of Notes Receivable $70,825 $117,888
    Inventories $7,850,970 $7,854,112
    Deferred Income Taxes - net $328,832
    Prepaid Expenses and Other Items $264,896 $328,192
    Total Current Assets $14,555,092 $14,643,456

    Notes Receivable, less current portion $256,583 $177,408
    Investment in Joint Venture $283,504 $133,504
    Property, Plant and Equipment - net $19,114,830 $18,511,360
    Intangible Assets - net $329,405 $336,128
    Other Assets $52,768 $54,400
    Total Assets $34,592,182 $33,856,256

    Liabilities and Stockholders' Equity
    Current Liabilities
    Current Portion of Long-Term Debt $1,219,258 $1,106,304
    Accounts Payable $3,650,073 $3,573,248
    Accrued Liabilities $1,350,144 $1,350,144
    Income Taxes Payable $754,619
    Total Current Liabilities $6,974,094 $6,029,696

    Bank Line of Credit $253,727 $487,936
    Long-Term Debt - less current portion $2,763,752 $2,535,552
    Deferred Income Taxes - net $2,485,354 $3,107,072
    Total Liabilities $12,476,927 $12,160,256

    Common Stock
    Stated par value is $.01.
    20,000,000 shares authorized.
    Issued and Outstanding 15,801,332 and 16,620,875 respectively, net of treasury shares. $29,055,488 $29,055,488
    Other Accummulated Comprehensive Losses ($202,496)
    Accumulated Deficit ($6,940,233) ($7,156,992)
    Total Stockholders' Equity $22,115,255 $21,696,000

    Total Liabilities and Stockholders' Equity $34,592,182 $33,856,256

    Riordan Manufacturing, Inc.
    Income Statement
    For the 12 months ending September 30, 2005

    2005 2004

    Sales $50,823,685 $46,044,288
    Direct Cost of Goods Sold $42,037,624 $37,480,050
    Gross Margin $8,786,061 $8,564,238

    Operating Expenses
    Sales, Marketing & Other $1,012,974 $920,886
    Depreciation $343,445 $349,937
    Quality Assurance $1,139,688 $1,095,854
    Research & Development $911,676 $828,797
    General & Administrative $1,706,953 $1,524,066
    Machining & Systems $628,505 $598,576
    Total Operating Expenses $5,743,241 $5,318,115
    Profit Before Interest & Taxes $3,042,820 $3,246,122

    Non-Operating Expenses
    Interest Expense $143,175 $230,221
    Taxes $943,274 $1,025,406
    Total Non-Operating Expenses $1,086,449 $1,255,628
    Net Profit After Taxes $1,956,371 $1,990,495

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    https://brainmass.com/business/finance/riordan-manufacturing-inc-ratios-103006

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    Riordan Manufacturing, Inc.

    Using the attached Balance Sheet and Income Statement calculate the following ratios:

    1) Liquidity ratios

    a) Current ratio

    = current ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate financial ratios for Riordan Manufacturing, Inc.

    $2.19