Fiscal Report 2013
The financial presentation of Rainbow Paint Company for the fiscal year ended December 31, 2013 emphasizes the company’s financial activities. Evaluating the company’s finances aids in assessing its present and past performance, making it a crucial tool for stakeholders including shareholders and other individuals associated with Rainbow Paint Company.
- The liquidness of the company is accurate as established by the current ratio, speedy ratio, working capital.
- Current Ratio stands at 2.0
- Quick Ratio stands at 1.0.
- Working Capital stands at $ 750,000.
The figure of yearss engaged to roll up receivables is half of the clip taken in selling the stock list.
- Histories Receivable Turnover stands at 13.3 yearss
- Number of Days’ Gross saless in Receivables bases at 27.4 yearss
- Inventory Turnover stands at 5.67 times.
- Number of Days’ Gross saless in Inventory bases at 64.4 yearss.
- In footings of solvency, the company’s place is non really strong as the company is keeping an equal proportion of debt in comparing to equity.
- Ratio of Fixed Assets to Long-term Liabilities stands at 1.7
- Ratio of Liabilities to Stockholders Equity stands at 1.0.
- Number of Times Interest Earned bases at 6.2
- Number of Times Preferred Dividends Earned bases at 6.1
- The profitableness of the company during the twelvemonth was sensible, as it was non excessively high and at the same clip non excessively low. The net incomes per portion on common stock was $ 4.10 per portion.
- The market public presentation of the company was besides appropriate. The company was able to administer dividends of $ 0.90 per portion of common stock, and keep the price-earnings ratio of 6.1.
President’s Letter to Shareholders’
Good afternoon Stockholders,
We hope you are doing well. Our organization has been very busy in the past year, and we have provided the report details for your reference.
The board of managers focused on a few key points to strengthen our organization:
- Review and update fiscal coverage
- Addition of a codification of behavior and struggle of involvement policy
- Development and rewriting of an organisational program
Overall, we reached a consensus that the future of Rainbow Paint Company holds great potential. To further enhance our performance, it is crucial for us to ensure efficient and effective operations. As we move into the upcoming year, our objective is to decrease debts and boost assets. Through the implementation of innovative strategies, we aim to fortify our balance sheet and attain growth in production. Subsequently, this will result in increased profits on investments and substantial enhancements in returns for shareholders, while also augmenting cash flow.
Currently, we are making significant advancements in cardinal developments. The incorporation of fresh resources allows us to have a resilient primer that perfectly matches the applied color. Consequently, this reduces the number of coats required and produces colors that remain vibrant for an extended period.
Furthermore, we have developed new shades, establishing ourselves as a prominent industry brand with widespread recognition. We are also the preferred choice in numerous locations across the country.
These endeavors mark only the beginning of several forthcoming projects aimed at strengthening our financial stability and solidifying our market position.
We are excited to introduce a new program at our store that allows customers to create their own custom colors. Customers also have the opportunity to match these colors with any item they bring in. Once we complete the installation of necessary equipment throughout all areas, we plan on expanding this initiative to other store locations later this year.
The approaching new year holds immense possibilities, and we are stepping into it with complete assurance that these fresh ideals will drive us towards a successful future. The year 2013 saw notable progress compared to 2012, and we expect even greater growth in the years ahead. Our aim is to establish Rainbow Paint Company as the favored option for homeowners and apartment dwellers by providing affordable prices and an expanded selection of innovative colors.
We expect a strong positive trend in our new ventures during the first quarter. As the economy stabilizes, we anticipate further growth in the second and third quarters, leading to an exceptional fourth quarter in 2014. Apart from these initiatives, we will prioritize enhancing employee retention and satisfaction. By implementing strategic efforts, improving employee benefits, and expanding our brand presence, we are confident that we will maintain a solid financial position throughout 2014 and into 2015. Our goals will be achieved by fostering loyalty among both employees and customers while expanding our presence to additional locations.
In 2014, our goal is to expand our impact on both employees and clients. The dedication and efficiency of our staff, along with the loyalty of our customers, played a crucial role in achieving our goals in 2013. In the upcoming year, we will continue to prioritize strengthening employee connections and providing exceptional products and customer service for our clients.
Rainbow Paint Company
Management Discussion & Analysis
The Management’s Discussion and Analysis of Rainbow Paint Company utilizes standard performance measures to track the financial condition and performance of Rainbow Paint Company for the period ending December 31, 2013. The accompanying financial statements and notes to accounts are prepared in compliance with applicable principles and procedures. All amounts are expressed in dollars unless stated otherwise.
The treatment comprises a range of “forward-looking statements” covering all studies, excluding historical facts. These statements are founded on present knowledge and future expectations. The company asserts that the possibilities outlined in these forward-looking statements are based on sensible expectations. Nevertheless, there is no assurance that these statements will precisely forecast future performance, as actual results or growth may diverge considerably from the content expressed in the forward-looking statement.
Forward-looking statements, which may include terms like “anticipate,” “plan,” “expect,” “budget,” and “believe,” or similar terms, are subject to variations between actual results and the statements themselves. These variations can be influenced by market prices, government regulations related to chemical usage, ongoing availability of financing, as well as overall economic and market or corporate conditions. It is important for investors to note that these statements do not guarantee future performance and that actual results or growth may differ from what is projected in the forward-looking statements.
There has been a small increase in gross revenues in recent years, but the growth in profit did not match this rise. While gross sales went up by 56%, net income only increased slightly by 16%. The increase in expenses was mainly due to higher interest expenses. As a result, the company intends to use its own funds for future equipment acquisitions. This decision will result in a reduction of the manufacturing budget for upcoming products and services.
Anticipated cash reserves growth resulting from increased sales is expected to result in higher cash dividends. Additionally, the introduction of new equipment has opened up possibilities for a new range of paint products catered specifically to honeymooners. These paints are environmentally friendly and can be easily removed, allowing honeymooners to personalize their rooms with different themes. The projected revenue boost from this upcoming product launch is estimated at 0.3 times.
The fiscal statements for Rainbow Paint Co. for December 31, 2013 and 2012 can be seen below (Accounting). The common stock of Rainbow Paint Co. had a market value of $30 on December 31, 1999, and $25 on December 31, 2013.
( Accounting )
( Accounting )
( Accounting )
2011 Annual Report. (2011). Retrieved March 28, 2014, from Sherwin Williams: hypertext transfer protocol://investors.sherwin-williams.com/pdf/annual-reports/2011_annual_report.pdf
Accounting, A. B. (Ed.). (n.d.). AC499 Unit 4 Rainbow.pdf. Retrieved March 30, 2014, from Kaplan University.
Warren, C. S., Reeve, J. M., & Duchac, J. E. (2012). Financial statement analysis. Mason, Ohio, USA: South-Western Cengage Learning. Retrieved March 28, 2014