For this 68 page Final Project (Not including the title page, abstract if included or reference page), you will create 1) the Financial Highlights, 2) the Presidents Letter to the Stockholders, and 3) the Management Discussion and Analysis reports that would be contained in a companys annual report to the shareholders. The Final Project will be based on the Rainbow Paint Company Financial Statements and the ratios. Here is the data.

Rainbow Paint Co. Comparative Income Statement For the Years Ended December 31, 2013 and 2012

Rainbow Paint Co.'s comparative financial statements for the years ending December 31, 2013 and 2012 are as follows. The market price of Rainbow Paint Co.'s common stock was $30 on December 31, 1999 and $25 on December 31, 2013.

This column contains the CORRECTED ratios. Formulas in cells.

2013

2012

Instructions

Refigured

Formulas

Sales

$5,125,000

$3,257,600

Determine the following measures for 2013:

Sales returns and allowances

125,000

57,600

1. Working capital

$ 750,000.00

current assets - current liabilities

Net sales

$5,000,000

$3,200,000

2. Current ratio

2.00

current assets/current liabilities

Cost of goods sold

3,400,000

2,080,000

3. Quick ratio

1.00

cash + short term investments +AR / current liabilities

Gross profit

$1,600,000

$1,120,000

4. Accounts receivable turnover

13.33

net sales/average gross receivables

Selling expenses

$650,000

$464,000

5. Number of days' sales in receivables

27.38

Gross receivables/(annual net sales /365)

27.375

Administrative expenses

325,000

224,000

6. Inventory turnover

5.67

Cost of Goods Sold/Average inventory

Total operating expenses

$975,000

$688,000

7. Number of days' sales in inventory

64.41

(Ending inventory / cost of goods sold) X 365

64.4118

Income from operations

$625,000

$432,000

8. Ratio of fixed assets to long-term liabilities

1.73

fixed assets/ long term liabilities

Other income

25,000

19,200

9. Ratio of liabilities to stockholders' equity

1.04

liabilities/stockholders equity

$650,000

$451,200

10.Number of times interest charges earned

6.19

Income before taxes and interest charges /interest charges

Other expense (interest)

105,000

64,000

11.Number of times preferred dividends earned

6.13

Net income available to Preferred Stockholders/annual Preferred Dividends Requirement

Income before income tax

$545,000

$387,200

12.Ratio of net sales to assets

1.43

net sales/average total assets

Income tax expense

300,000

176,000

13.Rate earned on total assets

6.98%

net income/average total assets

0.16333

Net income

$245,000

$211,200

14.Rate earned on stockholders' equity

13.59%

net income/ average stockholders equity

Rainbow Paint Co. Comparative Retained Earnings Statement For the Years Ended December 31, 2013 and 2012

15.Rate earned on common stockholders' equity

3.93%

net income less preferred dividends (common stock) / average common stockholders equity

2013

2012

16. Earnings per share on common stock

$ 4.10

net income less preferred dividends (common stock)/ Shares of common stock

Retained earnings, January 1

$723,000

$581,800

17. Price-earnings ratio

6.10

market price per share of common stock/ earnings per share of common stock

Add net income for year

245,000

211,200

18. Dividends per share of common stock

$ 0.90

dividends on common stock /# of shares of common stock

Total

$968,000

$793,000

19. Dividend yield

3.60%

dividends per share of common stock/ market price per share of common stock

Deduct dividends:

On preferred stock

$40,000

$40,000

On common stock

45,000

30,000

Total

$85,000

$70,000

Retained earnings, December 31

$883,000

$723,000

5000

# shares of preferred stock

50000

# of common stock shares

Rainbow Paint Co. Comparative Balance Sheet December 31, 2013 and 2012

0.32

required return on the stock

Assets

2013

2012

Current assets:

Cash

$175,000

$125,000

205000.00

Marketable securities

150,000

50,000

0.04

Accounts receivable (net)

425,000

325,000

Inventories

720,000

480,000

Prepaid expenses

30,000

20,000

Total current assets

$1,500,000

$1,000,000

Long-term investments

250,000

225,000

Property, plant, and equipment (net)

2,093,000

1,948,000

Total assets

$3,843,000

$3,173,000

Liabilities

Current liabilities

$750,000

$650,000

Long-term liabilities:

Mortgage note payable, 10%, due 2009

$410,000

-

Bonds payable, 8%, due 2012

800,000

$800,000

Total long-term liabilities

$1,210,000

$800,000

Total liabilities

$1,960,000

$1,450,000

Stockholders' Equity

Preferred 8% stock, $100 par

$500,000

$500,000

Common stock, $10 par

500,000

500,000

Retained earnings

883,000

723,000

Total stockholders' equity

$1,883,000

$1,723,000

Total liabilities and stockholders' equity

$3,843,000

$3,173,000

Shares of Common Stock

50000

50000

eps

market value/common share

Ratio	Solution
Working capital	$750,000.00
Current ratio	2
Quick ratio	1
Accounts receivable turnover	13.33	Times
Number of days' sales in receivables	27.38	Days
Inventory turnover	5.67
Number of days' sales in inventory	64.41	Days
Ratio of fixed assets to long-term liabilities	1.73
Ratio of liabilities to stockholders' equity	1.04
Number of times interest charges earned	6.19	Times
Number of times preferred dividends earned	6.13	Times
Ratio of net sales to assets	1.43
Rate earned on total assets	6.98%
Rate earned on stockholders' equity	13.59%
Rate earned on common stockholders' equity	3.93%
Earnings per share on common stock	$4.10
Price-earnings ratio	6.1
Dividends per share of common stock	$0.90
Dividend yield	3.60%

it is a final project of 6-8 page please.