NATURE OF CAPITAL AND INCOME

  

[Cuar. XV

CAPITAL ACCOUNT AT BEGINNING OF YEAR 1904

Assets

Factory
Repair fund

Liabilities
$279,500 Bonds te
20,500 Capital and surplus

$300,000

CAPITAL ACCOUNT AT END OF YEAR 1904

Assets
Factory (exclusive of
improvements) $268,500
Improvements 31,500
Repair fund 000
$300,000

Liabilities

Bonds canis
Capital and surplus

INncoME Account pUrING YEAR 1904

Capital Source Income Outgo
Factory Product . $40,000 Running :
expenses $15,000
, Special repairs
 31,500
Repair fund Sale of
entire New infund
 in vest-Dec.
 31,500 ment 10,000 |
Interest . 1,000 Interest
Bonds Interest 5,000
Capital and
surplus Dividends. 10,000
$72,500 $72,500

 

$100,000
200,000

$300,000

$100,000
200,000

$300,000
Net

—$6,500

1,000 { +21,500

— 5,000

— 10,000
000

Here we see that during the year 1904, the value of the
factory at the beginning was $279,500, and at the end,
exclusive of improvements, $268 500. But the improvements
or special repairs amounting to $31,500 have made up the
total value of the factory to $300,000. There is at this time
no repair fund whatever, as it has all been absorbed in
improving the factory. The assets, therefore, amount to
$300,000; the property of the stockholders remains stationary
 as before at $200,000; and their dividends also

remain stationary at $10,000. The factory itself during this