Riordan Manufacturing Financial State and Accounting Systems

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Date Submitted: 08/11/2009 04:11 PM

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Riordan Manufacturing Financial State and Accounting Systems

Riordan Manufacturing, Inc. is a worldwide manufacturer and the premier architect of plastic injection molding. Riordan Manufacturing employs 550 people who work at its corporate office and Research & Development (R&D) center in California, manufacturing facilities in Georgia and Michigan, and at its joint venture plant in China. The company produces plastic products such as bottles, fans, heart valves, medical stents and custom plastic parts (Apollo Group, Inc., 2006e).

Riordan Manufacturing has had strong sales in 2004 and 2005, reporting sales of $46 million and $50 million respectively. Its profits in 2005 were $3 million, which shows a slight decline from the 2004 figure of $3.2 million (Apollo Group, Inc., 2006c).

This paper provides comprehensive information about the overall financial status of Riordan Manufacturing; a detailed analysis of the corporation’s current accounting information systems; and an overview of the information and management systems that should have connections to the main accounting information system. In addition, the end objective of this report is to provide a suggested course of action for Riordan Manufacturing and the company’s management accounting information system.

Existing Accounting Systems at Riordan Manufacturing

Each of the manufacturing facilities at Riordan Manufacturing employs its own accounting system that is not integrated with the other facilities. However, all systems share a common set of components, which include (Apollo Group, Inc., 2006d):

• General Ledger

• Accounts Payable

• Accounts Receivable • Sales and Purchasing History

• Invoicing and Shipping

• Financial Reporting • Payroll

• Order Entry

• Procurement

The corporate office in California employs a Windows-based Enterprise Resource Planning (ERP) system that integrates the manufacturing, distribution, and financial management processes. This advanced system has brought additional...