Preparing Annual Report Documents
Financial Highlights (Quantitative and Qualitative Disclosure About the Market Risks)
Financial highlights are vital in the analysis of the level of performance of an organization. Also, it is effective in the assessment of the market risk that an organization might face both at the moment and in the future. The focus of the financial highlights will be on the net income and sales for the 2008 financial year.
The deals are liable to the inborn dangers that include the changes taking place in the economy. That could prompt trouble in the receiving collection, deals, expenses, and generation. Most retail sellers rely on customers who are willing to purchase the items in the development, renovation, and commercial enterprises. The focus is on how best they can enhance the appearance of their current structures. If there is an off chance of a downturn in the economy, the deals could ensure.
The lodging market has been on the downturn since 2008, but still, there have been expansion development deals. The commercial centers for the items direct that the items be dispatched more often after an order has been placed. The company is actualizing the new programming that will take place with the logistics group. The action will ensure that the company can deliver the items and that the items are delivered faster and accurately has asked for the proper request and is satisfied with the services being provided.
| 2013 Financial Highlights | ||
| 2012 | 2013 | |
| Net Income | $ 211,200.00 | $ 245,000.00 |
| Retained Earnings | $ 793,000.00 | $ 968,000.00 |
| 2012 | 2013 | |
| Sales | $ 3,257,600.00 | $ 5,125,000.00 |
Sales Graph
President’s Letter to the Stockholders
In the 2013 financial year, the company has been able to have a more rounded appearance than in the 2012 fiscal year. There has been an extension on the deals and creation of new hues to the offering of the products. The organization has exhibited solid figures in opposition like Benjamin Moore, Behr Valspar, and the Olympics. That has been made possible through building retail sellers in the current financial years and convincing the consumers that the company is a brilliant paint organization.
The group that deals with the logistics has been able to enhance the transportation logistics and has guaranteed a dependable on-time conveyance that the clients have requested. The designers have been able to enhance the capacity of the line creation to some of the items that are of high quality. The actions have been taken regardless of the off chance that it was bought in New Jersey or Mexico. The researchers are idealizing new strategies so that the hues created are of one a kind, arise from the contenders, and are more engaging than before.
The per-share earnings for the year are $4.10, and the profits that have been yielded are 3.6%. In the 2013 financial year, the company indicated some excellent development in the deals, gross benefits, working salary, and net pay. The creation of the lodging advertisements still does not show any network development. For instance, those who are reliant on the exchanges are significant aspects for the expansion of the businesses that will show an increase in development and imply that the company is attaining the intended goals. The clients have been effective in welcoming a good item at a reasonable price that the company is offering them.
In other places globally, the company has been taking a gander strategy that has been working to push forward and consider that the company will expand the current deals to countries like the United States. As a guarantee for the company to meet all the requirements of the extra volume, the organization will be expanding the creation of offices from the current two movements. Also, there is a need to change the five-day schedule of the company to one month. The company will be able to join deals and logistics programming with generation booking. There will be a guarantee that all the requests will be accomplished and transportation made to all the possible clients in the process.
In the principal quarter of the 2014 financial year, the propelled deals are likely to be great, and the organization is forecasting a stellar year through the development of new markets such as Canada and Mexico as there is growth in the United States market. The organization is in the process of making new hues for the clients. The extended generation of the company will have the potential to meet all the demands that the customers would have requested. In the end, the company is focusing on the Annual Financial Report and Consolidated Financial Statements for the year 2013 which have been documents of the website for Rainbow Paint.
The income statement for the company shows that there is a negative variance in the provision of the doubtful debt accounts. That is an indication that the company is effectively paying off the amounts in the account’s receivables. In 2016 there was a decrease in the variance for the doubtful debts concerning the 2015 financial year. More so, in the 2017 and 2018 financial years, there is a negative variance of 35% and 25%, respectively. The decline is not bad for the business. Instead, it is a positive gesture on the financial capabilities of the company. That is because there is a decrease in the debit balance and an increase in the net profits. Another negative variance is on the net assets, which have been released from restrictions and are being used for running operations in the company. The negative variance is experienced in the 2016 financial year concerning 2015 and the 2018 financial year concerning 2017. The negative variance is not bad as it is a clear indication of an increase in the number of assets as more and more are unrestricted. It implies that the management can take advantage of unrestricted assets to increase their level of production. One of the main contributors to the negative variances in the company is the lower amount of revenue in the company (AccoFina, 2015). The amount is lower than the budget that is anticipated. Also, in situations where there is a shortage in supply, there is an increase in demand. The outcomes result in profitability that is very low and a decline in net income.
As usual, thank you for the progressing support in the operation and advancement of the company’s operations.
President
Rainbow Paint Company
Management Discussion and Analysis
Rainbow Paint Company produces and offers fantastic products of different hues both within and outside the utilization of homes and business enterprises. Research has been effective in enhancing the efficiency and advancement that provides a guarantee of the quality of products that are being produced and sold. The logistic team is taking advantage of the graphical outline framework that has been incorporated into the programming as an assurance that the goods touch the base time that the client has outlined. The company has been trusting the long haul, and the focus has been on innovation with a backup from the clients of the prompt achievement that includes the suppliers, stockholders, and workers. Rainbow Paint offers a substantial number of retail clients responsible for the assortment of the business sector within the United States and hopes to expand the business venture into the North American market, which includes Canada and Mexico.
The key focus of the organization in the maintenance of the business include
- Extension of the client’s base
- Creation of an abnormal state of consumer loyalty.
The focus of Rainbow Paint has been on expanding widely through the creation of office through two movements for five days and three movements lasting for seven days (SEC Checklist, n.p). Through the process, the company will be able to create the potential of building generations and take care of the demanded items that will satisfy the needs and utility of the consumers present in the new markets of Canada and Mexico.
One way of keeping up with the abnormal state of the customer’s loyalty is to offer different mixes of paint that are exceptional and different from that of the competing company. Those in the research department are taking a shot on the bases, which will keep going for a much more extended period for the outside hues. The primary strategy is to get the needed edge over the competitors. The designers have been using development and innovation techniques that will fasten the generation to provide practical answers to the clients. At the same time, they still keep up with the noteworthy quality that will measure what the organization is known for and still increase their benefits (SEC Checklist, n.p). The company believes that it is essential that they keep offering items of the best quality and dependable. The company has been able to allocate the cost of the product most professionally.
The current business outlook indicates that in 2008 the lodging market downturn a considerable number of retail and commercial ventures were negative to the organization’s services. The process has resulted in downturns on occasional events. In evaluating the business, the company considers the pattern presented in the business report of the various commercial enterprises that the company is targeting. The company is worried about the situation, but there is a potential to have huge deals that will increase their level of performance (SEC Checklist, n.p). The company’s trust in the pattern can be combined with how the clients are repairing, repainting, and rebuilding their current homes and business enterprises. In a situation where the economy keeps on enhancing, and the lodging market grabs, there is a significant expansion in the current development deal. The main focus is on keeping up a gross edge that is steady and advancing on the operational cost structure while in the process, there is the maintenance of a working environment that is efficient.
The table below indicates the rate of net deals, and it is presented in the income statement of the organization.
| 2012 | 2013 | Percentage Growth | |
| Sales | $3,257,600 | $5,125,000 | 63.56% |
The organization is pleased to report an increase in income development for the year 2013. The organization places its trust in the steadiness of the business despite the declining economy in an acceptance of the quality of products that are being conveyed to the clients. There is trust in the solid development of some of the expansive requests that delineate the standard acknowledgment developed with the items (SEC Checklist). The net deals of the company read %5,125,000 with solid growth of 63.56%. The figure is an expansion of the same deals from the previous years. The fiscal goal benefit is $1,600,000, which provides the company with a 70% expansion over the same period for the previous financial year. The aggregate working costs increased to $975,000, a 70% expansion similar to the gross benefits. The expansion in the operational cost is because of the high cost of the faculty in connection with the variable pay. It is an advantage as it guarantees that the clients’ items will request the ones that the organization fills.
The working wage before the hobby ad assessment cost increased to $625,000, an expansion of 69% from the 2011 financial year. Before the assessment, the wages that were in place were $545,000, and that left the organization with an expense obligation of $300,000. The assessment risk is a 58% increase over the expense obligation for the 2011 financial year.
The trust of the company is in the present portion of 2.0 and a fast portion of 1.0. The organization is in a solid money position following the settings of the country of operations. The A/R turnover for the organization with the receivables being paid within thirty days (SEC Checklist, n.p). It is an indication that the company has an inward control by the credit office that is effective. The number of the stock turnover cannot be compared to the organization as the focus might be on the item present in the office that will last up to 65 days. Some of that is due to the Work in Process (WIP). Yet, they are in the process of creating new programming with the various logistics entities that will effectively streamline the effectiveness of delivery items that are out of the clients.
A review of the standard size income statement for the 2015 financial year to 2018 indicates a much higher revenue ratio. The amounts of revenue recorded include 99%, 98%, 97%, and 966.4% for the 2015, 2016, 2017, and 2018 financial years, respectively. There was a negative recording of the doubtful accounts from the 2015 to 2018 financial years. There was an abnormal change in the ratio for the pension and postretirement pension. Also, there is no further investigation under the common recording of the information. That is why there is a negative ratio for the pension and postretirement ratios for 2015 and 2016. Based on the analysis that has been carried out, Rainbow fiscal management is following the company’s strategic directions. That is because there is support from the increased revenue that is evident in the company. An increase in revenue indicates an increased level of performance in the organization.
While carrying out an analysis of the payable accounts and the accrued liabilities, there has been a recorded increase from 2015 through 2017. That indicates that the organization is purchasing the majority of the goods and services in credit rather than making payments in cash (Cliqvid, 2013). However, there were changes in 2018 as there was a decline in the number of accounts payable. That indicates that the organization had started to make payments of the goods and services in cash that credit. The decline can indicate that the company there is a decrease in the company’s cash flow statement. The decline is not alarming as it can positively impact the company (Macrotrend, n.p). More so, there has been an increase in the company’s long-term viability, which is a massive advantage for the company. An increase in long-term liabilities implies that the company is better positioned to increase its investment before it can start paying off its debts. That might cause an increasing ratio for the total amount of liabilities for the 2018 financial year.
References
AccoFina. (2015). Income statement explained: Comprehensive income statement tutorial: Profit & loss statement [Video file]. Retrieved from https://www.youtube.com/watch?v=EdHQ646zrDI.
Cliqvid. (2013). What is a balance sheet? [Video file]. Retrieved from https://www.youtube.com/watch?v=ixCPM5HznRU.
Macrotrend. (n.d). Apple Financial Ratios for Analysis 2005-2020 | AAPL. Retrieved from https://www.macrotrends.net/stocks/charts/AAPL/apple/financial-ratios
SEC Checklist for Annual Report (Item 6 – Selected Financial Data, Item 7 – Management’s Discussion and Analysis): http://www.corpgov.deloitte.com/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/CanEng/Documents/Restheces/Financial%20Reporting%20Tools/ChecklistForAnnualReportOnSEC_Form10-K.pdf. Accessed 1 June 2021.
ORDER A PLAGIARISM-FREE PAPER HERE
We’ll write everything from scratch
Question 
Unit 9 Final Project: Preparing Annual Report Documents
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.
Preparing Annual Report Documents
Note: During Units 2, 3, and 4 you developed data for “Quixote Company.” But in Unit 4, you also had a Practice Assignment based on the “Rainbow Paint Company.” The Final Project will be based on the Rainbow Paint Company Financial Statements and the ratios that you compute as practice. The Quixote Company has a limited amount of data; therefore, the Rainbow Paint Company data will offer an opportunity to create a more robust Annual Report to the Shareholders.
Companies normally issue these reports to the stockholders and other interested parties. These reports summarize the company’s operating activities for the past year and plans for the future. There are many variations in the order and form for presenting the major sections of the annual report. You should conduct independent research to find a variety of corporate annual reports to use as guides in the preparation of your Unit 9 Project.
Each week you will be addressing a different aspect of accounting and the business planning process. In the Final Project, you will use information gained from the weekly Assignments, the “Rainbow Paint Company” Review/Practice data, 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. See the APA Template uploaded in Doc Sharing for examples of a properly formatted title page and reference list. The KU Writing Center is also a great resource for help with all writing issues. In addition, the KU Business Center offers live tutoring and specific assignment guidance.
When you review the examples of corporate annual reports that you select during your independent research, you will see that they can be very long and very complex. However, your Assignment is limited to only 6–8 pages (not including the title page and reference list). Therefore, you should focus on the three aspects required for the Final Project. You are expected to use creativity and ingenuity in developing your Final Project. As you will see in the example annual reports you find in your independent research efforts, there is no one perfect way to prepare corporate annual reports.
However, the following information may help you as you complete your Unit 9 Project.
Assignment checklist
- Financial Highlights
- Presidents Letter to the Stockholders
- Management Discussion and Analysis
Here are some of the basic criteria that will be used to assess your Final Project:
- Project successfully presents every item in the Assignment checklist in every
- The Project correctly uses the Rainbow Company
- The Project exhibits strong higher-order critical thinking and
- Sentences are clear, concise, and direct; tone is
- Grammatical skills are strong with almost no
- Correct use of APA format where
Unit 9 Final Project Assignment Grading Rubric:
| Project Grading Criteria | |||
| Grade | Excellent Effort | Acceptable Effort | Unacceptable Effort |
| Content, Focus, Use of Text/Research | 29 – 33 Points Possible |
23 – 28 Points Possible |
0 -22 Points Possible |
|
Your Content Score = |
Response successfully answers the assignment question(s) in every aspect.
Used Correct Rainbow Data. |
Response answers the assignment question(s) with only minor digressions.
Uses Correct Rainbow Data |
Response insufficiently answers the assignment question(s); insufficiently uses the text and other literature.
Used wrong data. |
| Analysis & Critical Thinking | 18 – 20 Points Possible | 14 – 17 Points Possible | 0 – 13 Points Possible |
|
Your Analysis Score = |
Response exhibits strong higher-order critical thinking and analysis (e.g., evaluation). | Response generally exhibits higher-order critical thinking and analysis (e.g. true analysis). | Response exhibits simplistic or reductive thinking and analysis and demonstrates limited knowledge on the subject matter. |
| Writing Style, Grammar, Spelling & | 11 – 12 Points Possible |
8 – 10 Points Possible |
0 – 7 Points Possible |
| Format | |||
|
Your Writing Score = |
Sentences are clear, concise, and direct; tone is appropriate. Grammatical skills are strong with almost no errors. Correct use of APA format where appropriate. | Sentences are occasionally wordy or ambiguous; tone is too informal. Grammatical skills are adequate with few errors. Adequate use of APA format where appropriate. | Sentences unclear, meaning impaired; tone inappropriate and/or inconsistent. Grammatical skills are inadequate for college level.
Unacceptable use of APA format |
| Additional Comments as Neededè | |||
| Less | ç Deductions, Late penalty, other. | ||
| Total Project Score = /65_ | çYour Total Score |