Reference no: EM1362535

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