Profit Loss Statement Essay

556 words - 3 pages

Profit Loss
Carlos Figueroa
Sanford Schram

Profit Loss
With any business, the bottom line is to find whether the company is profitable or if it depreciating in value. In this documentation, it will be discussed the profits and losses for Riordan Manufacturing for the fiscal years of 2010 and 2011. For the most part Riordan Manufacturing saw positive profits in most aspects. Those aspects are assets, liabilities, and stockholders’ equity.
For the fiscal year of 2010 the total assets were $34,825,498 and the fiscal year for 2011 the total assets were $47,409,137, which is a positive in total assets of $12,583,639 from one year to the next. In most subsections of assets Riordan Manufacturing saw a positive. However, the one category that needs ...view middle of the document...

Another section in assets that needs attention is Inventories. In the fiscal year of 2010, Riordan total assets for Inventories were $102,976 and in 2011, their totals assets for inventories were $84,255. When the math is done that is a loss of Inventories Assets of $18,721. Once again, Riordan Manufacturing needs to make some changes in this category to not continue the trouble they are having in this field.
The total liabilities for the fiscal year of 2010 Riordan Manufacturing had $4,878,506. For the fiscal year of 2011 Riordan their total for liabilities were $13,961,155. The difference between the 2010 and 2011 was $9,082,649 which is a positive. The Stockholders’ Equity totals for 2010 was $29,946,992 and for 2011 the totals were $33,447,982. The differences between the two years were $3,500,900 which again was a positive. When the totals are added for both liabilities and Stockholders’ Equity the totals are $47,409,137 for 2011 and for 2010 the total are $34,825,496 which once more is a positive.
After reviewing all the totals for the following categories of assets, liabilities, and stockholders’ equity; Riordan Manufacturing is excelling in most subsections in multiple categories. However, like anything else, no company is perfect. While Riordan is doing very well, they need to address the issues they do have. Which are Other Assets and Inventories, in both categories they saw loss. If they do not fix these issues, Riordan could potentially start pit falling in other categories as well. This is not something successful companies want to do. This is why it is important Riordan Manufacturing implements a new strategy to combat these two subsections, however, continues to do the same things in all other aspects. Since, in all other sections, are seeing positives.

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