CONTENTS
ix
Slide Rule
How to Use a Slide Rule 135
Applicable to Business 136
Ratio and Proportion
Definition 136
Illustrations 137
Progressions
Arithmetical Formula and Uses 137
Geometrical Formula and Uses 138
Percentage of Profit Based on Selling
Price
Formula and Illustration 138
Table 139
Miscellaneous Tables
Value of Foreign Coins 140, 141
Shilling and Pence Expressed in Pounds 142
Metric System Tables 143
Table of Equivalents 144
Practical Tables 145
Weights and Measures of Foreign
Countries 147-150
Depreciation
Causes
Methods of Computing
Proportion Methods
Straight Line Method
Working Hour Method
Composite Life Method
Unit Production Method
Fixed Percentage on Diminishing Value 153
Sum of Expected Life Periods 153
Compound Interest Methods 154
Sinking Fund Method 154
Annuity Method 154
Unit Cost Method 155
Maintenance Method 155
Appraisal Method 155
Gross Earnings Method 155
Insurance Method 155
Table of Depreciation Rates 156-169
Wasting Assets Defined 170
Depletion Defined 170
Problem of Valuation 170
Factors for Valuation of Mines 170
U. 8. Treasury Table for Determining
Present Value of Wasting Assets.. . . 171
150
151
151
151
151
152
152
SECTION 3—FINANCIAL STATEMENTS AND REPORTS
Balance Sheet
Classification of Assets 175
Classification of Liabilities 177
Capital 177
Forms of Balance Sheets 178
Individual 193
Partnership 204
Corporation 204
Trusts, Estates, etc 205
Assets 205
Liabilities 210
Reserves 211
Capital 212
Capital Stock 213
Surplus 213
Deficit 214
Contingent Assets and Liabilities 214
Comparative Balance Sheet 217
Income or Profit and Loss Statement
Lack of Uniformity of Terminology... 218
Income or Profit and Loss Statement 219
Income from Ordinary Operations. ,.. 220
Cost of Sales 221
Selling Expenses 222
General Expenses 222
Bad Debts 223
Other Income Credits 223
Other Charges 223
Net Income 223
PAGE
Consolidated Statements
Consolidated Balance Sheets 225
Consolidated Income Statements 230
Holding Company’s Share of Profits
and Losses.: 230
Statement of Changes in Assets and
Liabilities 231
Ratios and Comparisons
Balance Sheet Ratios 232
Income and Expense Ratios 233
Financial Reports
Report to Stockholders 234
Periodical Reports to Executives 234
Reports to the Treasurer 247
Reports for Ordinary Credit Purposes. 247
Certified Statements 248
Requirements of Federal Reserve Board 248
Requirements of New York Stock Ex
change 248
Requirements of New York Curb
Market 250
Report for Prospective Purchaser or
Investor 251
Statement of Cash Receipts and Dis
bursements 251
Statement of Affairs 251
Statement of Deficiency 252
SECTION 4—BUDGETS
PAGE PAGE
The Tentative Budget 254 Organization for Preparation of the
The Budget Period • 255 Budget 255