Rainbow Paint Co.'s comparative financial statements for the years ending December 31, 2006 and 2005 are as follows. The market price of Rainbow Paint Co.'s common stock was $30 on December 31, 1999 and $25 on December 31, 2006. Rainbow Paint Co. Comparative Income Statement For the Years Ended December 31, 2006 and 2005

2006

2005

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

$ 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, 2006 and 2005

2006

2005

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

Total

$ 85,000

$ 70,000

Retained earnings, December 31

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%

12.Ratio of net sales to assets

Please show work

$ 883,000

For this 6–8 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 company’s annual report to the shareholders.

In the Final Project, you will use information of the “Rainbow Paint Company” data above, along with information obtained through research. These reports will be completed in Microsoft Word; a title page is required, but a running head is not necessary. An abstract is also not required. However, references will be required — therefore, it is important that you use a proper title page and correct reference list formatting.

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