Need this information in bold.

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.

Note: This is a practice activity to be performed before completing the Assignment for this unit. Also, this is the data to be used as the basis for your Unit 9 Final Project. The solutions for the Unit 4 Practice activity are located here.

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.

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

Sales $ 5,125,000 $ 3,257,600

Sales returns and allowances 125,000 57,600

Net sales $ 5,000,000 $ 3,200,000

Cost of goods sold 3,400,000 2,080,000

Gross profit $ 1,600,000 $ 1,120,000

Selling expenses 650,000 464,000

Administrative expenses 325,000 224,000

Total operating expenses $ 975,000 $ 688,000

Income from operations $ 625,000 $ 432,000

Other income 25,000 19,200

Income before Interest & Taxes $ 650,000 $ 451,200

Other expense (interest) 105,000 64,000

Income before income tax $ 545,000 $ 387,200

Income tax expense 300,000 176,000

Net income $ 245,000 ======== $ 211,200 ======== Rainbow Paint Co.

Comparative Retained Earnings Statement For the Years Ended December 31, 2013 and 2012 2013 2012

Retained earnings, January 1 $ 723,000 $ 581,800 Add net income for year 245,000 211,200 Total $ 968,000 $ 793,000

Deduct dividends: On preferred stock $ 40,000 $ 40,000

On common stock 45,000 30,000 T

otal $ 85,000 $ 70,000

Retained earnings, December 31 $ 883,000 ======== $ 723,000 ========

Rainbow Paint C0, Comparative Balance Sheet December 31, 2013 and 2012

Assets 2013 2012

Current assets:

Cash $ 175,000 $ 125,000

Marketable securities 150,000 50,000

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 2016 $ 410,000 -

Bonds payable, 8%, due 2017 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 =========

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