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Accounting Final Essay

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Management Discussion & Analysis
The Management’s Discussion and Analysis of Rainbow Paint Company provides the analysis of the company’s financial results for the period ended December 31, 2012. The following information should be read in conjunction with the audited financial statements and notes thereto for the period ended December 31, 2012 which are prepared in accordance with relevant standards and regulations. All amounts are expressed in dollars unless otherwise noted.
The discussion includes few statements that may be deemed “forward-looking statements”. All statements in the discussion, other than statements of historical facts, are considered as the forward looking statements because we have used what we know and expect today to make a statement about the future. The company believes that the expectations shown in forward looking statements are on the basis of reasonable assumptions. The statements do not guarantee future performance and the actual results or development may differ significantly from those mentioned in forward looking statement.
Forward looking statements includes the words like may, expect, plan, anticipate, budget, believe or other similar words. Factors that could lead to the difference between actual results and forward-looking statements include market prices, regulations of government regarding chemical usage, continued availability of capital, financing and general economic, market or business conditions. Investors are cautioned again that any such statements do not guarantee the future performance and that the actual results or development may be different from those projected in the forward-looking statements.
The sales growth in the past years was quite significant, but the growth in net income was not proportionate to growth in sales. The growth in net income was only 16%, whereas the increase in sales was 56%. The increase

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