X 
CONTENTS 
The Sales Forecast—Gauging Sales 
Possibilities 256 
Forms Illustrating Preliminary Esti 
mates and Sales Forecast 259 
Variations in Procedure 261 
The Selling Expense Forecast 261 
Preparation of Estimates 261 
The Production Forecast 263 
Goods on Order and for Stock 263 
The Plant and Equipment Forecast. .. 267 
The Purchasing Forecast 268 
Form for Perpetual Inventory of Raw 
Materials 270 
Form for Purchasing Forecast 270 
The Direct Labor Forecast 270 
PAGE 
The Manufacturing Expense Forecast. 274 
The Administrative Expense Forecast. 276 
The Other Income Forecast 277 
The Other Deductions Forecast 277 
The Financial Forecast 277 
Cash Receipts 277 
Cash Disbursements 278 
Form of Financial Forecast 279 
Procedure on Completion of Tenta 
tive Financial Forecast 270 
Modification of the Forecasts During 
the Period 279 
The Estimated Balance Sheet and 
Profit and Loss Statement 282 
Operation of the Budget 285 
SECTION 5—CONTROL OF CURRENT OPERATIONS 
Control of Receipts and 
Disbursements 
Importance of Cash Statements 293 
Cash Budget 294 
Daily Cash Receipt Controls 295 
Daily Cash Disbursement Control.. . . 295 
Daily Bank Balance Control 295 
Receivable Controls 295 
Shipments Control 297 
Daily Incoming Invoice Control 298 
Departmental Pay Roll Summaries. . . 298 
Condensed Daily Financial Report. . . 304 
Supervision of Cash Receipts 
and Disbursements 
Classification of Receipts 307 
Accounts Receivable 307 
Discount Notes 307 
Schedules of Overdue Accounts 307 
C. O. D. Accounts 309 
Sight Drafts 309 
Notes and Acceptances Receivable . . . 309 
Desirability of Discounting Notes 
and Acceptances Receivable 310 
Notes and Acceptances Payable 311 
Cash Sales 311 
Receipts of Royalties, Rents. Interest 
and Dividends 312 
Inter-Company Cash Transactions. . . 313 
Cash in Transit 313 
Cash Held in Branches and Foreign 
Countries 314 
Discount Income from Accounts Pay 
able 314 
Discounts on Receivables 316 
Verification of Discounts 316 
Collecting and Reporting of 
Cash Receipts 
Organization 317 
Customers’ Statements and Ledgers. . 317 
Work of a Collections Unit 319 
Incoming Mail Receipts 326 
Office Cashiers—Large Concerns 327 
Office Cashiers—Smaller Concerns. .. . 330 
PAGE 
Cash Sales 331 
Procedure in Handling Notes and Ac 
ceptances Receivable 333 
Procedure in Handling Sight Drafts 
and Time Drafts Receivable 333 
The Cashier’s Duties 334 
Internal Check on Cashiers 335 
Handling of Security Deposits 335 
Bank Accounts 337 
Daily Reports to Treasurer 339 
Handling of the Imprest Fund 340 
Petty Cash Vouchers 344 
Reimbursements for Expenditures from 
Imprest Fund 344 
Overages and Shortages 346 
Branch Office Petty Cash 347 
Petty Cash for Unclaimed Wages and 
Labor Pay Offs 347 
Tool Deductions Before Final Pay Off 348 
General 348 
Accounts Payable 
Control of Purchases and Delivery of 
Materials 349 
Form of Purchase Orders 349 
Receiving Reports and Packing Slips. 350 
Audit of Suppliers’ Invoices 352 
Purchase Invoice Record 358 
Voucher or Charge Register 358 
Accounts Payable Ledger 359 
Accounts Payable Machine Methods.. 360 
Accounts Payable Invoice Register . . . 363 
Invoice Register Recapitulation 363 
Creditors’ Settlement and Reconcilia 
tion 366 
Handling of Freight, Express and 
Parcel Post Expenditures 
Incoming Freight Expense Bills 368 
Inbound Express Charges 369 
Inbound Parcel Post 369 
Outbound Freight 369 
Outbound Express 370 
Outbound Parcel Post 370