Assignment Part One - Unit 4[AC499 Bachelors Capstone in Accounting Unit 4 Practice Activity Financial Report Analysis Rainbow Paint Co Note This is a

Assignment Part One - Unit 4[AC499 Bachelors Capstone in...

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Unit 4 [ AC499: Bachelor’s Capstone in Accounting ] Unit 4 Practice Activity: Financial Report Analysis Rainbow Paint Co. 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.
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  • Summer '19
  • Balance Sheet, Generally Accepted Accounting Principles, Bachelor’s Capstone in Accounting, Rainbow Paint

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