ACC/291
March 25,2012 Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities
2005
$14,555,092/ $6,974,752= 2.09:1
2004
$14,643,456/ $6,029,696=2.43:1
Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities
2005
$305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1
2004
$357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1
Receivables Turnover: Net Credit Sales/ Average Net Receivables
2005
$50,823,685/ ($6,133,663 + 5,775,104/2)
$50,823,685/ $5,954,384= 8.54 times
2004
$46,044,288/($5,775,104+6,569,344/2)
$46,044,288/ $6,172,224=7,46 times
Inventory Turnover: Cost of Goods Sold/ Average Inventory
2005
$42,037,624/ ($7,850,970+$7,854,112/2)
$42,037,624/$7,852,541=5.35 times …show more content…

42,037,624 $37,480,050 $4,557,574 12.2%
Gross Margin $8,786,061 $8,564,238 $221,823 2.6%
Operating Expenses
Sales, Marketing & Other $1,012,974 $920,886 $92,088 10%
Depreciation $343,445 $349,937 ($6,492) (1.9%)
Quality Assurance $1,139,688 $1,095,854 $43,834 4%
Research & Development $911,676 $828,797 $82,879 10%
General & Administrative $1,706,953 $1,524,066 $182,887 12%
Machining & Systems $628,505 $598,576 $29,929 5%
Total Operating Expenses $5,743,241 $5,318,115 $425,126 8%
Profit Before Interest & Taxes $3,042,820 $3,246,122 ($203,302) (6.3%)
Non-Operating Expenses
Interest Expense $143,175 $230,221 ($87,046) (37.8%)
Taxes $943,274 $1,025,406 ($82,132) (8%)
Total Non-Operating Expenses $1,086,449 $1,255,628 ($139,179) (11.1%)
Net Profit After Taxes $1,956,371 $1,990,495 ($34,124) (1.7%)

Riordan Manufacturing, Inc
Vertical Analysis-B/S
September 30 2005 2004 Amount Percent Amount Percent
Assets
Current Assets Cash $305,563 0.9% $357,216 1.1% Accounts Receivable $6,062,838 17.5% $5,657,216 16.8% Current Portion of Notes Receivable $70,825 0.2% $117,888 0.3% Inventories $7,850,970 22.7% $7,854,112 23.2% Deferred Income Taxes - net $328,832 .97% Prepaid Expenses and Other Items $264,896 0.8% $328,192 .96%
Total Current Assets $14,555,092 42.1% $14,643,456 43.3%
Notes Receivable, less current portion $256,583 0.7% $177,408 9.3%
Investment in Joint Venture $283,504 0.8%