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 re- 
pairs 31,500 
Repair fund Sale of 
entire New in- 
fund 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 sta- 
tionary as before at $200,000; and their dividends also 
remain stationary at $10,000. The factory itself during this