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