Acc 291 Week 5 Profitabilty Ratios

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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
2004
$37,480,050/ ($7,854,112+8,074,880/2)
$37,480,050/ $7,964,496=4.71 times

Profitability Ratios
Current Assets 2004 2005

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

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

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

Common Stock
Stated par value is $.01.
20,000,000 shares authorized.
Issued and Outstanding 15,801,332 16,620,875 , 29055,488 $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 Horizontal and Vertical Analysis

Riordan Manufacturing, Inc
Horizontal Analysis-B/S
September 30
Increase or (Decrease) during 2005

Assets20052004AmountPercent
Current Assets
Cash$305,563$357,216(51,653)(14.5%)
Accounts Receivable$6,062,838$5,657,216$405,6227.2% Current Portion of Notes Receivable$70,825$117,888($47,063)(39.9%) Inventories$7,850,970$7,854,112($3,142)(.05%)
Deferred Income Taxes - net $328,832...
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