Copy of Part 2 Rain Paint-1.xlsx - Rainbow Paint Co.s comparative financial statements for the years ending and 2015 are as follows The market price of

Copy of Part 2 Rain Paint-1.xlsx - Rainbow Paint Co.s...

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Rain Paint Co. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 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 Rain Paint Co. Comparative Retainined Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 2015 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 31 883,000 723,000 Rainbow Paint Co.’s comparative financial statements for the years ending December 31, 2016 and 2015, are as follows. The market price of Rainbow Paint Co.’s common stock was $25 on December 31, 2016, and $30 on December 31, 2015.
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Rain Paint Co. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets:
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