Riordan Manufacturing Accounting Cycle

Riordin Manufacturing Company
Team A: Neal Hennessy, DeDe
Gearhardt, and Jennifer Walker
ACC/340 – Accounting Information
Systems I
February 23, 2015

Joyce Williams

Introduction
Riordan Manufacturing Inc.
Dr. Riordin started Riordin Manufacturing Inc. in the year
1991.
This is an industry leading in using polymer materials to provide solutions to customers challenges.
Production:

Beverage containers, beverage makers, and bottlers. 
Automotive parts, aircraft parts, appliances
Custom parts and plastic fans

Introduction
The accounting cycle
Revenue Cycle
Internet/Intranet
Planning and Investigation
Analysis
Design
Implementation, Follow up, and Maintenance
Conclusion

Accounting Cycle
There are five accounting cycles that Riordin
Manufacturing
Inc. can utilize. They are:
 Revenue cycle
 Expenditure cycle
 Conversion cycle
 Financing cycle
 Fixed Assets Cycle

Riordin Manufacturing Company
Revenue Cycle
Revenues is the amount of Riordin earns from selling goods or providing services to its customers. Cycle
Include:
 Sales order (+-)
 Amount of the product or service
 Payment by credit card
 Cash receipt

Income Statement

Income Statement
(Revenue)

Income Statement

2011

2010

Sales

$

66,608,660.00

$

10,074,406.00

$

56,534,254.00

Direct Cost of
Goods Sold

$

51,592,470.00

$

7,622,220.00

$

43,970,250.00

Gross Margin

$

15,016,190.00

$

2,452,186.00

$

12,564,004.00

Operating Expenses
Sales,
Marketing &
Other

$

1,328,615.00

$

63,267.00

$

1,265,348.00

Depreciation

$

1,378,616.00

$

226,491.00

$

1,152,125.00

Quality
Assurance

$

1,151,176.00

$

38,929.00

$

1,112,247.00

Research &
Development

$

1,039,637.00

$

77,010.00

$

962,627.00

General &
Administrative

$

4,954,751.00

$

280,458.00

$

4,674,293.00

Machining &
Systems

$

143,808.00

$

18,758.00

$

125,050.00

Total Operating
Expenses

$

9,996,603.00

$

704,913.00

$

9,291,690.00

Profit Before
Interest & Taxes

$

5,019,587.00

$

1,747,273.00

$

3,272,314.00

Non-Operating Expenses
Interest
Expense

Taxes

$

604,616.00

$

483,083.00

$

121,533.00

$

1,104,309.00

$

384,400.00

$

719,909.00

Report
Earnings Before Income Taxes Depreciation
Amortization (EBITDA) Margin Report is
$15,016,190 = .18 percent Margin
$20,000,000
$15,000,000
$10,000,000
$5,000,000
Column2
$0
Revenue

Op Expenses

NonOp Expenses

($5,000,000)
($10,000,000)
($15,000,000)

Series 1 is Revenue = $15,016,190 Column 1 Operating
Expenses = $9,996,603 Column 2 Non- Operating Expense
= $1,708,925

Internet
Customers & potential customers
 Product & service information
 Self help & payment options
 Contact info. & Location listing
 Company History
 Mission Statement
 Invoices & Statements


Intranet
For everyday employee use
 Task and department oriented
 Company documents & reports
 HR forms
 Internal job listings
 Internal accomplishments & awards
 Employee manuals
 Internal company directory (w/name, position,duties, email and phone number)


Internet vs. Intranet

System Development Cycle

Evaluation


Riordan Financing and Accounting System is license to a fully integrated Windows based ERP manufacturing, distribution and financial management software application specifically designed for plastics processors and process and assembly manufacturers.



During the investigation: The license does not include application source code. Various challenges with the system.
The vendor went out of business.



Needed a new up-to-date financing and accounting software



The ultimate strategic plan based off research and recommended is Enterprise Resource Planning (ERP) Infor Visuals Solutions
--Financials

Analysis
Infor Visual Solutions provides a
Riordin Manufacturing Inc. needs an up-to-date system from Infor Visual
Solutions—Financial
Weakness – Financing& Accounting system having multiple issues.
Laziness and Inexperience Workers
On-time delivery
Less communication and
Relationship with customers to gain sale of products
Advisements
Strength - Internet sales
Quality products
New technology on polymer materials financial and accounting solutions to
Riordin.
Replacement with an up-to-date hardware system
Opportunities to improve systems and product quality, profitability, and time consistency. Train workers on new system
Strength- integrated modern financial ERP solution in order to compete globally. Provides support for detailed product, manufacturing, and project costing methods; national and supra-national statutory bookkeeping and GAAP regulations; and various payment/collection methods and taxes that conform to local and national business practices

Design
Riordin will have the full rights to the new system. The new system is Infor Visuals
Solution Financials
The hardware is integrating into Riordin computers. The company is willing to train workers to focus and learn about its components. Implementation



Installation of hardware and software



Training programs for frontline and management employees

Testing


Every day use of the system, putting it through its paces.



Encourage creative thinking



Encourage feedback from end users

Conclusion
System development cycle is ongoing and circular  In order for Riordan to maintain efficiency, they must continually use the cycle to improve the system
 It is always a work in progress


References


See attached paper