MASTER 
 NEGATIVE 
 
 NO. 94-82095 
 
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Author: 
 
 Minster, Leopold 
 
 Title: 
 
 Retail profits, turnover 
 and net worth 
 
 Place: 
 
 New York 
 
 Date: 
 
 [1921] 
 
MASTER NEGATIVE « 
 
 COLUMBIA UNIVERSITY LIBRARIES 
 PRESERVATION DIVISION 
 
 BIBLIOGRAPHIC MICROFORM TARGET 
 
 ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 
 
 Minster, Leopold. 
 
 Retail profits, turnover and net worth; simple methods 
 of determining gross profit, expense and net profit in any 
 size store ; with concise forms for approximating stock on 
 hand any month, week or day, and finding average stock 
 and turnover, by Leopold Minster ... New York, U. P. C. 
 book company, inc. ['1921] 
 
 48 p. illus. (forms) 24^". 
 
 Reprinted from Atlantic coast merchant. 
 
 1. Department stores — Accounting. i. Title. 
 
 Library of Congress 
 Copyright A 624500 
 
 
 
 HFS686.DSMS 
 is23c2] 
 
 21—16305 
 
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 Retail Profits 
 
 Turnover and Net Worth 
 
 
 ', ^ 
 
 LEOPOLD MINSTER 
 
 o' ^i 
 
 
 -<§ 
 
 

 THE LIBRARIES 
 
 GRADUATE 
 
 SCHCX)L OF BUSINESS 
 
 LIBRARY 
 
 V 
 
 1 1 
 
r 
 
 r> 
 
 Retail Profits, Turnover 
 and Net Worth 
 
 Simple Methods of Detennining Gross Profit, Expense and Net 
 Profit in Any Size Store; with Concise Forms for Approximating 
 Stock on Hand any Month, Week or Day, and Finding Average 
 
 Stock and Turnover 
 
 By 
 
 LEOPOLD MINSTER 
 
 RepriiUed from 
 Atlcmtic Coast Merchant 
 
 NEW YORK 
 
 U. p. C. BOOK COMPANY, Inc. 
 
 243-249 West 39th Street 
 
5^ 
 
 f 
 
 4 
 
 
 if^ if 2^0 LP 
 
 CoPYaiGHT, 1921 
 U. p. C. BOOK COMPANY, Inc. 
 
 
 HAMMOND PNC** 
 
 W. ■. CONKCY COMPAMT 
 
 CHICAGO 
 
 Foreword 
 
 THIS booklet should be especially helpful to the retail merchant. 
 It is based on the author's years of experience as a merchant's 
 accountant, and as a writer on modem systems for leading business 
 publications. The methods he advocates are described accurately, thor- 
 oughly and in clear and simple language. 
 
 The fundamentals of Leopold Minster's training were obtained 
 during nineteen years of work as one of the chief lieutenants of the late 
 Isidor Straus, senior partner of E. H. Macy & Co. and L. Straus & Sons, 
 a member of the firm of Abraham & Straus and director of some of the 
 leading financial institutions of the country. 
 
 Subsequently Mr. Minster established himself as consultmg 
 accountant and in this capacity his services have been called upon by 
 merchants from all parts of the world. 
 
 Three facts particularly fit Mr. Minster for the wntmg of this 
 
 work: 
 
 1. That during his career as a consulting accountant he has 
 * specialized in the simplification of big store systems and their 
 
 adaptation to the needs of the medium and smaller stores. 
 
 2. That he has ever borne in mind the accounting needs of a 
 store whose books are not kept on the ** double entry" plan. 
 
 3. Recognizing his exceptional opportunities for keeping in touch 
 with the progress constantly being made in his field, he de- 
 voted much of his time to describing practically his day to 
 day work in leading publications. 
 
 Thus, as an authority in his particular field, Mr. Minster stands 
 
 alone. , , . i. x 
 
 The material in this hand-book was written by him for presenta- 
 tion in the Atlantic Coast Merchant in serial form and has been revised 
 by him for this work. Every method here shown is in actual use in 
 successful stores. Every amount included in the schedules is based 
 on actual trading in a store whose sales total last year was about 
 
 $100,000. , . ^. X ^ 
 
 In Chapter I are presented the simplest and most direct ways ot 
 determining the store's gross profit and gross profit percentage and of 
 testing the figures found. 
 
 8 
 
4 Retail Profits, Turnover and Net Worth 
 
 In Chapter 11 are shown equally simple ways of determining the 
 store's net profit. How to test the results in such a way as to present 
 to the merchant a clear picture of what became of his net profit, if he 
 really made any, is also described. This chapter alone, if taken to heart 
 and applied to his own affairs, may mean, to many a merchant, the 
 turning point in his business career. For it shows in a, b, c form 
 how to present a picture of the real progress — or retrogression — of 
 his business from year to year. 
 
 It is difficult to overestimate, too, the value of the schedule which 
 forms the main feature of Chapter III. By using the a, b, c methods 
 therein graphically illustrated by Mr. Minster, a merchant can keep in 
 close touch with his merchandising. Thus he can minimize his losses 
 through overbuying and underselling. The schedule in Chapter III 
 in brief shows the merchant how, with a few minutes' work, he can 
 record and follow up for comparative purposes his total purchases, 
 sales, approximate gross profit earned, stock on hand, etc., so that he 
 can determine: 
 
 1. Whether his purchases are O. K. 
 
 2. Whether his sales totals are as planned. 
 
 3. Whether his fire insurance is ample. 
 
 4. Whether his gross profit is covering his requirements for 
 expenses and net profit. Thus, if anything even looks wrong, 
 he can immediately take steps to check it. 
 
 In other words, Mr. Minster presents a method which makes it 
 possible for the merchant to use foresight instead of hindsight. That 
 is, to know how his business is going all the time, instead of waiting 
 until the end of the year, or even longer, when it may be far too late 
 to remedy matters. ' 
 
 In addition to doing all the above valuable work, the concise 
 schedule prepared by Mr. Minster for Chapter III shows the merchant 
 the simplest way to find his average stock and thus enables him to 
 readily compute how many times he has turned his stock, NJumberless 
 articles have been written on this subject, but this is probably the 
 first time that there has appeared in book form such a simple and 
 practical method of getting at and following up the vital figures. 
 
 In Chapter IV Mr. Minster supplements the analyses suggested in 
 Chapter II by showing how to make tests to determine whether the 
 amount of cash on hand at the end of the year tallies with the amount 
 of cash that ought then to be on hand. 
 
 This chapter also shows how to determine what was each month's 
 share of the year's purchases and sales. 
 
 One of the main purposes of the tests in Chapters II and IV is to 
 enable the merchant to determine whether the store's bookkeeping 
 system as a whole produces accurate results and gives the information 
 required. 
 
 <j 
 
 Toreword 5 
 
 In Chapter V are taken up, in regard to each department, the gross 
 profit figuring, etc., which, for the store as a whole, was taken up in 
 Chapter I. How to determine the percentage of goods returned by 
 *'cash" customers, by ** charge" customers and by **all" customers is 
 also shown in Chapter V. 
 
 One of the main purposes of Chapter VI is to throw light on a 
 point regarding which there is much misunderstanding, viz. : the radical 
 difference between the percentage of gross profit which is found when 
 the cost price is used as the basis for figuring and the corresponding 
 percentage that is found for the same gross profit when the selling 
 price is used as a basis. For instance, the unwisdom of calling a gross 
 profit 50 per cent on cost price, instead of 33 1/3 per cent on selling 
 price. 
 
 Another vital point emphasized by Mr. Minster in Chapter VI is 
 the importance of so providing in advance for unavoidable price reduc- 
 tions, shrinkages, expenses, etc., that when the final results are deter- 
 mined, the net profit will be a satisfactory one to the business. In 
 brief, in Chapter VI Mr. Minster endeavors to make clear that even 
 though goods may be bought right, tBey must be marked right and then 
 sold right in order that results, satisfactory to all concerned, will be 
 forthcoming. In Chapter I, moreover, Mr. Minster shows how to figure 
 gross profit percentages both on the cost price and on the selling price 
 of the goods sold. 
 
 In Chapter VII Mr. Minster presents one of the, if not the very 
 simplest methods of following up stock on hand in such departments as 
 Wearing Apparel, Shoes, Rugs, Furniture, etc., with a view to avoiding 
 loss through overbuying and underselling. In other chapters this mat- 
 ter is taken up only as to dollars and cents amounts. In Chapter VII 
 the work is taken up regarding the goods themselves, item by item. 
 In other words, in Chapter VII Mr. Minster shows how to follow up 
 quantities, sizes, styles, colors, etc., so that slow moving goods can be 
 ** pushed" while fast moving goods, if advisable, can be promptly re- 
 ordered. More than that, he shows how the precise gross profit made — 
 on each item, or each day — can readily be determined in an extremely 
 simple manner. 
 
 In Chapter VIII is shown how one store divided the rent charges 
 (for the space used for selling) among its various departments during 
 three different years. 
 
 In Chapter IX is shown what cash discounts the same store earned 
 during the same three years. 
 
 The Publisheb. 
 
Table of Contents 
 
 CHAPTER I 
 Knowing Where You Are At vs. Groping in the Dark 
 
 CHAPTER II 
 Do You Know Your Net Profits and Where They Went?. ... 14 
 
 CHAPTER III 
 Simple Schedule Shows Vital Facts of Your Business 20 
 
 CHAPTER IV 
 This Test Shows Whether Your Books Were Kept Right. ... 25 
 
 CHAPTER V 
 How TO Find the Weak Spots in Your Merchandising, 
 
 30 
 
 CHAPTER VI 
 Buy Your Goods Right, Then Mark Them Right, and Sell Them 
 
 Right 
 
 35 
 
 CHAPTER Vn 
 
 Stock Record Shows at Glance What You Want to Know. ... 39 
 
 CHAPTER VIII 
 
 What Share of Rent Are You Paying for Your Part of Sell- 
 ing Space! 44 
 
 CHAPTER IX 
 Cash Discount for Three Years Compared At a Glance 
 
 6 
 
 47 
 
 C3EIAPTERI 
 
 Knowing Where You're At t;^. Groping in the Dark 
 
 AT a recent convention two business men discussed the value of good 
 - accounting methods. The one, a credit man, had for years been 
 connected with the handling of the customers' accounts of a wholesale 
 house ; the other had gained his experience mainly as a general manager 
 of a retail concern. The credit man maintained that the merchant 
 ought, at all times, to be prepared to give to his creditors that informa- 
 tion regarding his financial condition to which they are entitled. He 
 added, moreover, that **The experienced retailer who extends credit 
 to customers does so only after he is satisfied that they are a safe 
 risk for the amounts involved. If he is in doubt, he will as diplo- 
 matically as possible obtain from or through them the information 
 which will enable him to make up his mind. 
 
 ** Naturally, therefore, when he himself asks for credit he ought 
 to regard it as only fair and sensible for him to be in a position to 
 give his creditors the data they need for their mutual protection. For 
 each time he, the retailer, opens an account with new creditors, do 
 they not, in a sense, become partners in his enterprise? Are they not 
 interested in the success of his venture, at least, in accordance with 
 the value of the goods which they are giving him * on time ' f 
 
 Data Asked for by Credit Men 
 
 **To safeguard his credit, therefore, the merchant ought to be 
 in a position to answer such questions as the following: 
 
 1. **What was the total of the merchandise inventory with which 
 
 you started the year? 
 
 2. **What was the total of the merchandise inventory with which 
 
 you ended the year? 
 
 3. **What was the total of your purchases last year? 
 
 4. **What was the total of your sales last year? 
 
 5. **What was the total of your store expenses last year, and 
 
 what did you include therein? 
 
 6. ^*Are the expenses (including rent, depreciation, owner's 
 
 wages, etc.) so carefully classified and recorded that he can 
 readily determine whether, and where, he is spending too 
 much or too little — and thus minimize either waste or in- 
 judicious economy? 
 
 7. **What was your trading net profit last year? 
 
 8. **What other income did your business have? 
 
 \ 
 
 / 
 
8 
 
 Eetail Profits, Turnover and Net Worth 
 
 Knowing Where You're At vs. Groping in the Dark 
 
 9. **What were your resources and your liabilities at the start 
 of last year? 
 
 10. **What were your resources and your liabilities at the end 
 
 of last year!" 
 [Note: The object of questions 9 and 10 is to find out how the 
 net profit of the year affected the store's resources and liabilities.] 
 
 11. **Was there in bank, and on hand, at the start of the year, 
 
 the amount of ca^h then called fort 
 
 12. **Is there at present, in bank and on hand, the amount of 
 
 co^/i called fort" 
 
 The Merchandise Man's Viewpoint 
 
 To all of this the merchandise man replied : 
 
 ** Whether he needs that information for his creditors or not, the 
 merchant ought certainly to want it for his own guidance. In brief, 
 if he wishes to build, not merely for the present but also for his future 
 progress, and do his work with self-confidence instead of groping in 
 the dark, he ought at any time to be able to determine not only the 
 answers to the foregoing questions, but also the answers to the fol- 
 lowing ones : 
 
 1. **What is the approximate total of the store's gross profits 
 
 since the last inventory t 
 
 2. "What is the approximate value of the stock on hand? 
 
 3. **How much did the store's average stock amount to last yeart 
 
 4. "How many times was that average stock turned last yeart 
 
 5. "What percentage on the store's merchandise payments last 
 year did the cash discounts average t 
 
 In marking goods, is there always added to laid-down cost 
 
 a percentage sufficient to provide for a fair net profit, after 
 
 reductions, expenses, shrinkages, etc., are duly taken into 
 
 consideration t 
 
 7. "Of that part of the store's merchandise (such as wearing 
 
 apparel, shoes, etc.) which must be followed up closely in 
 
 order to bring a satisfactory profit, which sizes, colors, 
 
 widths, styles, qualities, etc., are on handt 
 
 "Which of these items are and which are not selling right t 
 
 "What was the total quantity bought, and how much was 
 
 sold, of each itemt 
 "What was the gross profit made on each itemt" 
 Experienced merchants realize that the data referred to by both 
 of these men is essential to efficient business management. Many a 
 merchant, moreover, has heard such suggestions time and again and 
 has wondered how he could apply them to his own business with a 
 minimum of effort and cost. 
 
 The purpose of this book is to help the retail merchant to find an 
 
 6. 
 
 (( 
 
 8. 
 9. 
 
 10. 
 
 accurate answer to that problem in the simplest manner. Therefore, 
 practically all the methods have been illustrated in schedule form. 
 A separate form or schedule is devoted to each step in the work. 
 
 Every item is so clearly explained either in the schedule or the 
 text, or both, that the reader can adopt the methods merely by sub- 
 stituting his own figures in forms similar to those illustrated, which 
 he can readily rule to suit his own requirements. 
 
 Thus he mil have available for ready reference and for comparison 
 with the figures of previous years (or of other concerns) the vital 
 statistics of his business operations. 
 
 Can You Tell Your Gross Profits and Know You Are Right? 
 
 In an Atlantic Coast town of less than 2,700 population, located 
 less than 20 miles from a much larger center, there is a department 
 store which during its last fiscal year, ended March 1, 1920, sold almost 
 $100,000 worth of goods. Of this total about $35,000 worth consisted 
 of groceries. The store has sent me several interesting letters con- 
 taining painstakingly tabulated year's-end figures of various kinds 
 which it asked me to analyze. 
 
 I here present one of these letters as well as the first installment 
 of my analysis of the figures. In subsequent chapters I shall present 
 other letters and figures of this store, as well as my analyses thereof, 
 referred to hereunder. 
 
 Four Schedules as to Gross Profit Exclusive of Discounts 
 
 In one of the four schedules presented herewith I have employed 
 some of the store's figures to illustrate one way of determining its 
 *' gross profits." A way to test the correctness of that "gross profit" 
 figure is shown in two other schedules. In the fourth schedule I take 
 up the "gross profit" percentage computations, using both "cost price" 
 and "selling price" as a basis. 
 
 I have endeavored to make these schedules so clear that any mer- 
 chant can, by inserting his own figures in the place of this store's, com- 
 pute his own gross profit, etc., and then test his computations as I 
 have tested mine. 
 
 I use this technical term "gross profit" because until now that 
 is the term which has been generally employed to distinguish such 
 "profit" from real profit or — as it is termed — ^**net" profit. In later 
 articles I will show simple ways of determining such profits. 
 
 Keep in Touch with Value of Stock on Hand 
 
 Some merchants know how much stock they have on hand only just 
 after they have made an inventory, or — as some term it — ^an "invoice" 
 of their stocks. More progressive merchants, however, are not content 
 to spend most of the year in the dark in that way. Through simple 
 
 / 
 
^ *. 
 
 10 
 
 Ketail Profits, Turnover and Net Worth 
 
 methods they can tell, at a glance, the value of the stock they have on 
 hand "at any moment." 
 
 Unless a merchant can do this, that is, can always tell, at least 
 approximately, the value of his stock on hand, how can he keep in 
 touch with how much, or how little, fire insurance (or burglary in- 
 surance) he requires! How can he be certain as to how much or how 
 little merchandise he ought to purchase! Or, how can he gauge as to 
 when to increase his advertising (or to **push" certain merchandise) 
 so as to decrease his stocks! Hence I will use this store's statistics 
 to show, besides the methods already mentioned, how you can arrive at 
 the answers to the questions we have listed on this page. 
 
 Methods Simple — ^Explanations Clear 
 
 The questions may seem formidable, or, to put the matter differ- 
 ently, some readers may think that the preparation of such statistics 
 will involve an undue amount of work on their part. Hence, note that 
 to make this series of maximum value to my readers my methods and 
 explanations will be made so simple and clear that any merchant will 
 be able to readily adapt any, or all, of them that he needs— and do so 
 without an undue amoimt of extra work on his part. Moreover, 
 wherever possible I will show at least two ways of doing the same 
 *' chore" so that if the merchant desires he can test the correctness of 
 
 the figures. 
 
 Here, then, is the first of the Atlantic Coast department store's 
 
 letters above referred to : 
 
 One of the Store's Letters 
 
 ** herewith find figures for the fiscal year, March 1, 1919, to March 
 1, 1920. Besides two men and two lady clerks, we employ one lady 
 bookkeeper who works only in the office, one delivery man who helps 
 inside when not delivering, one boy who works only evenings, mornings 
 and Saturdays. As manager of the store I look after the buying, adver- 
 tising, * credits,' collections, card writing, etc. 
 
 ** About four years ago our sales totaled between $25,000 and 
 $30,000 a year. Last year they were about $100,000, of which 55 per 
 cent was *cash' business and the remaining 45 per cent was * charge.' 
 
 "I feel, therefore, that to do justice to our growing business I will 
 have to make others responsible for certain departments, etc. 
 
 **Will you kindly make up a profit and loss account and such other 
 schedules as are essential to a comprehensive analysis of the following 
 
 figures! 
 
 **I will gladly give you promptly such additional information as is 
 
 required." 
 
 To present here all the figures the store sent me would take up more 
 space than can be spared ; therefore, I shall present here only a sum- 
 
 Knowing Where You're At vs. Groping in the Dark 11 
 
 mary of the figures sent and give the details in those of various 
 schedules in which they belong. In other words, each schedule will show 
 all the figures that belong therein, whereas here I give only such as 
 are necessary for a general survey. 
 Here is this summary: 
 
 Some of the Store's Figures 
 
 Merchandise on hand as per inventory (cost price) March 1, 1919, 
 $20,795.59. Merchandise on hand as per inventory (cost price) March 
 1, 1920, $22,880.22. Customers' accounts and other resources March 1, 
 
 1919, $6,849.60. Customers' accounts and other resources March 1, 1920, 
 $12,762.46. Liabilities, March 1, 1919, $1,023.38; liabilities, March 1, 
 
 1920, $1,173.93; merchandise bought during the year, less goods re- 
 turned to wholesalers, $81,716.52 ; cash discounts deducted from above 
 purchases, $1,782.78; merchandise sold during the year (selling price), 
 $99,663.81. From these sales must be deducted merchandise returned 
 by charge customers, $1,204.31 ; and returned by cash customers, $479.88. 
 
 g;iiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiii 
 
 I (In all the following schedules "bill-price" means: Wholesale price before | 
 
 I deducting cash discount.) § 
 
 SCHEDULE 1 I 
 
 Merchandise Account, Year Ended March 1, 1920. 
 
 (Summary) 
 
 
 Dr. 
 
 Inventory March 1, 1919 — 
 
 (This item shows the value of the goods on hand at the 
 
 start of the year at "cost price") $20,795.59 
 
 Purchases, less returns to wholesalers (bill price) $81,716.52 
 
 Freight, expressage, etc. (inward) 728.32 
 
 (This item shows the laid-down-bill-price of the goods bought 
 during the year) 82,444.84 
 
 Total Dr. (gross-cost) $103,240.43 
 
 Cr. 
 
 Sales, less customers* returns — 
 
 (This item shows the selling-price of the goods bought by 
 customers during the year) $97,979.62 
 
 Inventory March 1, 1920— 
 
 (This item shows the value of the goods on hand at the end 
 
 of the year at "cost-price") 22,880.22 
 
 Total Cr. $120,859.84 
 
 "Gross-profit" (exclusive of cash discounts). See also foot of 
 Schedule 3 
 
 $17,619.41 
 
 In the following Schedules (2 and 3) we present a rough analysis of the store's 
 "merchandising" during the year ended March 1, 1920. The purpose of this analysis 
 1 is to "test" the correctness of the "gross profit" amount shown at the foot of 
 I Schedule 1. 
 
 iiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiuiiiiiiiiiiiiiii 
 
12 
 
 Betail Profits, Tnrnover and Net Worth 
 
 Hence "net" sales were $97,979.62. Cost of mnning the business (in- 
 cluding depreciation on equipment, but not including bad debts, or 
 ** interest on investment," and not including Federal income tax, as this 
 was paid by the individual partners and not by the store), $10,465. 
 Loss through bad debts, $1,090.25:^'./^ 
 
 To Find and Test the Gross Profits Exclusive of Discounts 
 
 To enable us to determine a store's ** gross profit" for a given 
 period we must know (a) the selling price of the goods that it sold 
 during that period, and (b) the cost price of these goods. In this 
 case the store reported to us the net selling price of the goods sold 
 (after deducting customers' returns, etc.) as $97,979.62; but it did not 
 report to us what those goods cost the store. So in Schedule 2 we make 
 an effort to determine that cost figure. 
 
 iwmwBBHiiimmmti iiiiiiiHiin ii i i uuii iiii ui i HimiMiiiiiui i iHi i Hmii iiii iu 
 
 nmntrnnntniuinininniiuiHiuMF' 
 
 SCHEDULE 2 
 
 Merc]uuidii6 on band at the start of the year (March 1, 1919), as per 
 inventory $ 20,795.59 
 
 Add : Merchandise Purchases during the year, less returns to wholesalers 
 
 (bill price) 81,716.52 
 
 Add: Frdght, eaq[>re8sage, ete. (inwrnrd) 728.32 
 
 Gives: Total "Mdae." to be accounted for— 
 
 (This item shows the '*laid-down-«oet-price'' of the merchandise that 
 ought to have been on hand at the end of the year if nothing had been 
 sold or otherwise diq>osed of during the year) $103,240.43 
 
 But, according to tiie inventory taken at the end of the year (March 1, 
 
 1920), the cost-price total of the goods then on hand was only 22,880.22 
 
 Hence (aside from the goods which were returned to wholesalers) there 
 
 must have been sold or otherwise disposed of during the year, goods 
 
 which had cost the store) $ 80,360.21 
 
 (Note — In every store there are leaks through goods "disappearing,** being 
 given away, broken or damaged, etc. The cost value of the goods which 
 have thus "leaked away" is included in this amount— $80,360.21. That is 
 why, instead of saying that this amount represents the cost price of the 
 goods that were sold during the year, we must say that this represents 
 the cost-price of the goods that were sold or otherwise disposed of.) 
 
 mimtiiniiittiiininiiniiiiitiininiii)MiiiuiiiiiiiiiiiiniinniiiHiiiiiiiiiiiiuii;iiiniiiiiiiiniiiiiinniiiiiiiMiiiiiintiiiniiiii!iitiiiiiiii^ 
 
 Upon examining Schedule 2 my readers will see that I begin it 
 with the ''cost" of the goods that the store had on hand at the start 
 of the year, viz., $20,795.59; and to that amount I added the ''cost" of 
 the goods which the store bought during the year, viz., $81,716.52, as 
 well as the freight, etc., thereon, viz., $728.32. I did this in order to 
 find out what was the total laid down cost of the goods which the store 
 *' handled" during the year. This, as can be seen in Schedule 2, was 
 $103,240.43. 
 
 The next thing to note was that at the year's end the store had 
 left (as per inventory at cost price) $22,880.22 worth of goods. Then, 
 by deducting this last named amount from the $103,240.43, as I did 
 
 \ 
 
 »* 
 
 ■ U 
 
 A 
 
 Knowing Where You're At vs. Groping in the Dark 
 
 13 
 
 in Schedule 2, I learned that during the year the store must have 
 disposed of goods which had cost it $80,360.21. 
 
 
 SCHEDULE 3 
 
 Selling-price of the goods which the store sold during the year (less 
 deductions for customers' returns) $ 97,979.62 
 
 Deduct: The cost-price of the goods that were disposed of during the 
 year (as shown at the foot of Schedule 2) 80,360.21 
 
 Leaves: "Gross profit" (exclusive of cash discounts). See also foot of 
 Schedule 1 $ 17,619.41 
 
 In Schedule 3 I contrasted the selling price of the goods sold dur- 
 ing the year, viz., $97,979.62, with their supposed cost price, as shown 
 at foot of Schedule 2, viz., $80,360.21; and thus I learned that the 
 store's ** gross profit*' for the year (exclusive of cash discounts) was 
 $17,619.41. 
 
 In projecting this series I determined to show ways of testing 
 various results obtained in setting up the store's figures. Therefore, 
 instead of taking for *'0. K." the $17,619.41 gross profit shown us by 
 Schedule 1 (which contains the more orthodox method of determining 
 ** gross profits"), I also set up Schedules 2 and 3 and, as shown, reached 
 the identical result. 
 
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 SCHEDULE 4 
 
 "Gross Profit*' Percentage Ck>mputatioiis 
 
 Upon dividing the $17,619.41 by $80^60.21, we find that during the jear ended 
 March 1, 1920, the store's "gross profit" (exclusive of cash discounts), was equal 
 to almost 22 per cent on the cost price of the goods which the store "disposed or* 
 during the year. 
 
 Upon dividing the $17,619.41 by $97,979.62, however, we find that during the year 
 ended March 1, 1920, the store's "gross profit" (exclusive of cash discounts) was 
 equal to 18 per cent on the selling price of the goods which the store sold during 
 the year. 
 
 vwuiuiuHtimiiiniiiiiitiiniiiiitiiiMiniitiiiiitiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiii^ liiiiiiiitiiimiiiiiiiiiiiiiiiiiiiititiniiiiiiuiHuuuutiituuuiiijJiuuiimutH 
 
 In Schedule 4 I show briefly how to figure the gross profit per- 
 centage, using either the co5^price or the selling -i^yiqq of the goods sold 
 as a basis. Both methods are essential. Every merchant ought to be 
 familiar with them. 
 
 (* I 
 

 i I 
 
 CHAPTER II 
 Do You Know Your Net Profits and Where They Went? 
 
 IN the preceding chapter I presented a noteworthy communication 
 from a department store in an Atlantic Coast town of less than 
 2,700 population, located less than 20 miles from a much larger center. 
 The letter showed, among other things, that the store, during its last 
 fiscal year, ended March 1, 1920, sold ahnost $100,000 worth of mer- 
 chandise, whereof ahout $35,000 worth consisted of groceries. 
 
 The store requested me to analyze the year's end figures which 
 it sent with the letter, so as a first installment of that analysis I pre- 
 sented four schedules. Therein, using two different methods, I showed 
 that the store's gross profit for the year, eaxlusive of cash discounts, 
 totaled $17,619.41 (or 18 per cent on the selling price of the goods which 
 it sold during the year). 
 
 Gross Profits Including Cash Discounts 
 
 In Schedule 5, presented herewith, in our Profit and Loss summary 
 for the year, I include the total of the cash discounts which the store 
 earned during the period, viz., $1,782.78. By so doing I got as a 
 total **gain" for the year $19,402.19. 
 
 Upon dividing that amount hy the store's sales for the year (viz., 
 $97,979), I find that, including the cash discounts, the store's (gross) 
 profit equaled almost 20 per cent on selling price. 
 
 From the $19,402 gain in Schedule 5 I, of course, had to deduct the 
 store's expenses (including losses on had accounts) ; these as shown 
 in detail in Schedule 5 totaled $11,555.25. By so doing I learned that 
 the store's net profit for the year amounted to $7,846.94 (see foot of 
 Schedule 5). 
 
 Inward Freight, Etc., Is Part of Merchandise Cost 
 
 It will he noted, however, that no matter how carefully anyone of 
 my readers may study the expense list, in Schedule 5, he will not 
 be able to find therein an item referring to the store's outlays for 
 inward freight, expressage, etc., on the goods which it bought. Upon 
 examining, however, our Schedules 1 and 2 which appeared in the 
 previous chapter, readers will find that therein I did include, as a part 
 of the store's merchandise ** account," the $728.32 that the store paid 
 out during the year for inward freight, expressage, etc. 
 
 Here are a few of the reasons why I treat such outlays as forming 
 part of the cost of the goods bought and, hence as merchandise items : 
 
 14 
 
 
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 Do You Know Your Net Profits and Where They Went? 15 > 
 
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 SCHEDULE 5 
 
 Profit and Loss Summary 
 
 Or. 
 
 Gross Profit, exclusive of cash discounts, as shown at foot of ^^^ ^^ 
 
 Schedules 1 and 3 * ' " '^l" J' V ™fii ''»\* " ' 
 
 (This amount is, of course, the "trading net profit. ) 
 Cash Discounts as reported to me by the store i.to^.tQ 
 
 ^ $19,402.19 
 
 Total Cr 
 
 Dr. 
 
 ^Payroll (including $2,000 for the partner who manages the 
 
 b^siUrbut not iiicluding wages of driver of delivery ^^^^^ 
 
 track; see next item) ' ' 
 
 mgJr^f driver of truck (who also seUs goods in ^^ _ 
 
 the store) ; • ifi*?*nn 1 
 
 Depreciation on delivery equipment !»»•"" | 
 
 Other delivery expenses • ^^^ j 508.89 | 
 
 y/ '720.00 I 
 
 ?P* .*.*.'.*. .*.'. . 260.77 I 
 
 i!}&^} 166.33 i 
 
 Heat 427.10 I 
 
 274.21 1 
 
 Advertising ggg 67 1 
 
 Paper and twine g^gg | 
 
 Sales books , ^^ . ^ | 
 
 Office supplies ^-'ka i 
 
 Carried from previous year "^'^^ | 
 
 Total supplies ••••••• ^^It'fn I 
 
 Lew .-Unused and carried over to new year... 1^^.?» ^^^^^ | 
 
 397.39 I 
 
 Fire insurance, etc .*'.** i J i« s 
 
 Mercantile tax and water rent (this does not P^lude any in- j 
 
 come tax, as that was paid by the partners ^^dividimllyO ^^ 115.64 j 
 
 Phone 94*19 1 
 
 Postage 20.10 I 
 
 Laundry 101.78 i 
 
 Incidentals ; • • 07*00 
 
 Donation (Mdse.) to hospital ^'-^^ g^g^g 
 
 Depreciation on store equipment ;__ 
 
 Total of expenses ^^?^090 25 '^ 
 
 Add: Loss on bad accounts lyvvv.^o 
 
 „ , ^ 11,555.25 I 
 
 Total Dr _J | 
 
 , „ , , , Qx $7,846.94 I 
 
 1 Net profit (see also Schedule 8) . . . . ... ..;•••• • • ••••.;•,;; ' ' 1 
 
 I (This amount is, of course, the "trading net profit. ) | 
 
 I, nSnISZE mmmmmmmmmmm mmmmmmmmmmmmmmmmm .n.,.....................................F, 
 
 In Case of Fire Loss, Etc. 
 If a mercliant suffers a fire loss or a burglary loss, lie can claim 
 from his companies (and, if lie has sufficient insurance, he ought to 
 obtain) not merely the original price of the goods but also the additional 
 sums which he, as a capable, conscientious merchant, would have to pay 
 to put such goods back where they were when they were destroyed or 
 burglarized. 
 
 )! 
 
.4t; 
 
 16 
 
 Retail Profits, Turnover and Net Worth 
 
 Andy broadly speaking, that means : (1) If the market (wholesale) 
 price of the goods has advanced, the merchant is entitled to claim the 
 advanced price and not merely the original price which he had paid. 
 (2) If to replace the goods to advantage the merchant must purchase 
 them in another market, he can claim from his insurance companies 
 (a) the freight, etc., which he will have to pay to **land*^ the goods 
 on his counter; (b) the buying costs (such as the expenditures for rail- 
 road fares and hotel bills), without which he cannot replace the goods, 
 etc 
 
 In too many stores, laying down costs are treated as ** Expense.*' 
 That's why I lay emphasis on the correct method of treating them, viz., 
 as "Merchandise"! 
 
 In Schedules 6 and 7, using the 
 store's total (net) sales for the 
 year as a basis, I divided each ex- 
 pense item, etc., by $97,979, so as to 
 determine what percentage on the 
 store's sales for the year its ex- 
 penses, etc., represented. 
 
 Htmuuuiuiuiuuiiiuuuuiittiiiuiiuiiiuiuuiiiiuiiiuiiiiuiiuiiiiauuiiuiuuuuuiiwuiuuuiimimiuin 
 
 SCHEDUUB 6 I 
 
 m 
 
 Expense Percentage (SununAry) | 
 
 St 
 
 Payroll (not including driver, | 
 
 but including $2,000 for 1 
 
 manager-partner) 6%% | 
 
 Delivery (including pay of I 
 
 driver who sells in store be- | 
 
 tween times) 1%% i M,„mau 
 
 Bent, light and heat 1%% 
 
 Miscellaneous expenses includ- 
 ing Supplies, Advertising, 
 Fire Insurance and loss on 
 Bad Accounts 2%% 
 
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 SCHEDULE 7 
 
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 Total of expenses. 11%% i I 
 
 M 1 
 
 {The percentages in Schedule 6 are | | 
 
 hated on telling price of the goodt | | 
 
 told hy the ttore during the year.) | | 
 
 I I Total Gross Profit (including 
 
 I I cash discounts) 19%% 
 
 I I Expenses 11%% 
 
 I I 
 
 Leaves: Net profit, about. . 8 % | 
 
 (All thete percentages [like those in | 
 8{^edule 6], are based on the store's | 
 sales-total for the year,) I 
 
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 Increases in Resources, Etc. 
 
 In Schedule 8 I test, in two ways, the correctness of the result 
 shown at the foot of Schedule 5. 
 
 As can be seen. Schedule 8, ** agreeing with*' Schedule 5, shows, 
 in two places, that the store's net profit for the year was $7,846.94^ 
 That is, in this instance the amount at the foot of Schedule 5 (viz., the 
 concern's trading profit) and the amount at the foot of Schedule 8 (viz., 
 the concern's increase in net worth) tally to the cent. 
 
 Inasmuch, however, as a concern's trading might show a net loss 
 (instead of a net gain), and since there are conditions under which the 
 amounts at the foot of Schedule 5 and Schedule 8 might not tally, I 
 interpolate here certain questions and answers thereto which I trust 
 will prove helpful : 
 
 Question 1. Suppose the total of a concern's expenses and other 
 losses exceeds its profits, thus making the year show a net loss instead 
 of a net gain, how wonld that affect Schedule 5? 
 
 I 
 
 Do You Know Your Net Profits and Where They Went? 17 
 
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 i 
 

 Retail Profits, Turnover and Net Worth 
 
 Ans. If the total of the losses during the year is larger than the 
 total of the profits, the foot of Schedule 5 instead of being marked 
 **net profit must of course be marked **net loss," accordingly. 
 
 2. Suppose that a concern makes other PROFITS besides those 
 connected with its trading? Or, 
 
 3. Suppose that a concern has LOSSES not directly connected 
 with its trading? 
 
 Ans. If the concern effects gains or suffers losses not directly 
 connected with its trading, these gains or losses should be shown 
 separately at the foot of Schedule 5 — after the trading profit (or loss) 
 has been clearly indicated. In other words, for various reasons 
 Schedule 5 should clearly indicate separately not only how much the 
 concern has made or lost through trading, but also how much it has 
 made or lost in other ways. 
 
 If Foot of Schedule 5 and of Schedule 8 Don't "Tally" 
 
 4. Snppose that the amount shown at the foot of Schedule 5 (be 
 it net gain or net loss) does not tally with the amount shown at the 
 foot of Schedule 8, would that mean that the concern's books were not 
 correctly kept? 
 
 Ans. The answer to this question depends on the circumstances. 
 If the amounts at the foot of the two schedules do not tally, it ought at 
 least to be possible to explain every cent of the difference. For 
 
 example : 
 
 a. Perhaps a partner (or partners) took out a part of their capital 
 
 during the year. 
 
 b. Perhaps a partner (or partners) invested new capital during 
 
 the year. 
 
 c Perhaps an entirely new partner was taken in. 
 
 d. Perhaps the concern made certain profits (or suffered certain 
 losses) which it ha^dled in such a way as to affect the figures in 
 Schedule 8, but not those in Schedule 5. 
 
 If after taking such points and others into consideration the dif- 
 ference between the two schedules cannot be explained, then one of 
 the following conclusions might be in order : 
 
 The books have not been correctly kept. 
 
 The schedules have not been correctly made up. 
 
 The one who is looking for the error (or errors) does not know 
 how to ** reconcile" the figures. 
 
 Schedule 8 makes clear that though the store started the year with 
 assets totaling only about $27,000 (and liabilities of about $1,000), the 
 managing partner could show at the year's end, i. e., on March 1, 1920, 
 assets that had increased to $35,642, or a net worth of $34,468.75. 
 Besides this, Schedule 8 reveals just how the store's net profit was 
 reinvested in the business or, in other words, just what became of 
 the almost $8,000 which the store made, net, last year. 
 
 f u ^ 
 
 J 
 
 / 
 
 Do You Know Your Net Profits and Where They Went! 19 
 
 To account, then, for this gain the store could show at the year's 
 end over $4,000 more cash; over $1,000 more due from customers; 
 about $2,000 worth (cost value) more merchandise; and a delivery 
 equipment value increase of $700. Against these gains there is to be 
 noted, of course, as shown in Schedule 8, a decrease of store equip- 
 ment value of $100 and an increased indebtedness to wholesalers of $150. 
 
 In the next chapter in this series I hope to be able to use this store's 
 
 figures to show : 
 
 How to determine the value of the stock on hand at any time ; 
 
 How much the store's stock amounted to during the year at its 
 highest (and at its lowest) level. 
 
 How much the store 's average stock for the year amounted to. 
 
 How often the store turned its merchandise during the year, etc. 
 
 f 
 
CHAPTER III 
 
 Simple Schedule Shows Vital Facts of Your Business 
 
 TN the first chapter of this series I stated that the store, during the 
 I'lwdvfmonfts ended March 1, 1920, sold nearly ^lOO-^J^J^ ,f 
 
 goods, whereof $35,000 worth consisted f .g'-^^X^; ^ ^^tSftl^^ 
 emDloving different plans, I demonstrated, in Schednles 1 to 4, that the 
 swH^ot profit for the year, exclusive of cash discounts, totaled 
 ^17 619 (or 18 per cent on selling price). _ 
 
 * In the second article of the series, efPlf-g/f^^fiT^J^Keai 
 showed, in Schedules 5 to 8, that the store's net Vvo&tiov i^ej^v 
 totaled $7,846.94 (or about 8 per cent on the selling price of the goods 
 
 "'^t%terfaS!''hord tlso that inelu^i., the cash dU. 
 counSthI stoTe's gross profit was $19,402; that its e:j-ses tota^^ 
 about $11,555; and that its -t profit for the ^J- -;e^s sdes'ftr^he 
 Bividinff these various amounts by $y/,y/y, lue sioie a »axco 
 velfl showed that the store's gross profit, jf «f-^ .<^«i^— 3*^ 
 averkeed about 20 per cent on seUing price; that the store s expenses 
 Xled abou? 12 pe? cent; hence its net profit was abo-t 8 per cent on 
 the selling price of the goods the store sold during the year. 
 
 Here in Schedule 9, 1 list, month by month, the store's purchases 
 „.^ .Z: for the year In the schedule I also show the approximate 
 
 mine that the store, during the year, earned an average stock whose 
 
 cost price ^^?i« ^^"^IgT^fi^re" as a basis I found that th^ stoiie 
 .HuS^ravfaSstocfJbout three and a half times during the 
 
 ^%Ms "turn" ^^o^^l^^lff:^^^^^^, S^SfnTtE 
 S ^"' fTZ^ZZLliieLL^S^ common method of dividing 
 Z'sSuLX Se store's'ales for the year by the co.t-pri^ce o 
 Se ^3t oTstock with which the store merely started the year. If 
 T LTeSoved that method of figuring I would have said that the 
 stote"SSed'' its "merchandise" nearly five times durmg the yeari 
 
 20 
 
 Simple Schedule Shows Vital Facts of Tour Business 
 
 21 
 
 J 
 
 What Schedule 9 Teaches 
 
 In taking so mnch pains to *'get up" Schedule 9 I had in mind not 
 only the listing of the store's figures, so my readers could use them for 
 comparison purposes, but also enabling each of my readers to prepare 
 such a schedule for himself so he can learn at any time how much stock 
 he has on hand; how much fire insurance «r burglary insurance he may 
 
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 SCHEDULE 9 
 
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 • 
 
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 22 
 
 Betail Profits, Turnover and Net Worth 
 
 require ; how his purchases and sales for the period thus far compare 
 with those of the corresponding period during previous years ; how his 
 stock, then on hand, compares with that which was on hand at the cor- 
 responding date during previous years; and, hence, whether he is (ap- 
 parently) buying too heavily or not heavily enough; or whether, for one 
 reason or another, he ought to pursh certain kinds of mercfia/ndise, in^ 
 order to bring the sales up to the proper mark, etc. 
 
 Most of these things Schedule 9 can tell a merchant practically 
 at a glance. Common sense, based on experience, will help him to 
 determine the remainder. For Schedule 9 will aid by telling him the 
 approximate cost of the goods that are being sold; the number of times 
 the stock is being turned, etc. 
 
 Simplicity of Method 
 
 As can be seen, at the foot of Schedule 9, 1 mention that by adding 
 the figures on each line in his column 1 to the figures on that same 
 line in column 2, the merchant can obtain his figures for column 3. 
 
 Again, I said that, by deducting from the figures in column 4 of 
 Schedule 9 those figures that appear in its column 5, the merchant can 
 get the figures for column 6. Then, to start the **next'' line, I said: 
 From the figures in column 3 deduct the figures in column 6, and thus 
 get your figures for the next line of column 1. 
 
 To express the method in even simpler language, let me state 
 that to start the schedule I entered on the first line, in column 1, the 
 cost price of the goods with which the year started, viz., $20,795. 
 
 Next to that amount I entered, in column 2, the cost price of the 
 goods bought during the first month, viz., $6,022. 
 
 By adding these two amounts I learned that, if no goods at all 
 had been sold, there ought to have been on hand, at the end of the 
 first month, $26,817 worth of goods (cost price). 
 
 But during the first month there were sold $6,271 worth of goods 
 (selling price) ; hence I entered that amount (on the first line) in 
 column 4. 
 
 Base Percentage on Own Experience 
 
 Now we come to the first step about which the merchant must do 
 a little careful thinking in order to prepare ** Schedule 9'' for his own 
 business. Each merchant must know from past experience what per- 
 centage on selling price his gross profits have averaged and thus be 
 able to determine what percentage they are likely to average 'Hhis'' 
 
 year. . 
 
 In this particular case, by going over the store's figures, 1 learned 
 that its gross profits for the year, excluding cash discounts, were about 
 18 per cent on selling price. In another store, however, the percentage 
 may be less or much more. Hence I cannot tell a merchant just what 
 percentage he must use. That he must determine for himself, with the 
 
 .•»r 
 
 , 
 i 
 
 Simple Schedule Shows Vital Facts of Your Business 23 
 
 aid of his accountant or otherwise. As stated, in this case the per- 
 centage to be used happened to be 18, so I made the necessary com- 
 putation and found that 18 per cent on $6,271 (the selling price of the 
 goods which were sold during the first month) was $1,128, and that 
 amount I entered on the first line in column 5, as the approximate gross 
 profit for the first month. 
 
 Carry Forward from Line to Line 
 
 It was a simple matter then for me to deduct the $1,128 from the 
 $6,271 and get $5,143 as a remainder. This I entered on the first line 
 in column 6 as the **cost price of the goods which were sold" during 
 
 the first month. 
 
 Now I was ready to start the second line. So, from the $26,817 
 in column 3 (the total of the goods which would have been on hand if 
 nothing had been sold) I deducted ** column 6," the cost of the goods 
 which were sold, viz., $5,143 ; and thus I learned that there was on hand 
 to start the second month approximately $21,674 worth of goods (cost 
 
 price). 
 
 Step by Step 
 
 Step by step I continued the work, finding (a) each month's ** ap- 
 proximate'' gross profit; and (b) the cost price of each month's sold 
 goods. Thus I learned that at the end of the year there should have 
 been on hand $22,880 worth of goods. This, as those of my readers 
 who have read the previous chapters know, is the amount which the 
 store did have on hand, at cost price, at the year's end, viz., on March 
 
 1, 1920. X , . 
 
 Of course, I was able to get the exact result because I knew, tti 
 advance, the precise percentage of gross profit which the store had 
 made. It is hardly to be expected that every merchant who uses this 
 system will be able to come so close to the final result as I did in this 
 instance. Several merchants to whom I have recommended this method, 
 however, have told me— after employing the plan for years— that they 
 have been gratified by the accuracy with which through *' Schedule 9" 
 they have been able to estimate their stock on hand. The difference 
 between the amount of stock they expected to find on hand and what 
 they actually found was notably small, they gratefully assured me. 
 
 Schedule 9 Method Can Be Applied to Weeldy and Even Daily 
 
 Stock Estimates 
 
 It will be noted that in Schedule 9 I have used month's figures 
 only. It stands to reason, however, that Schedule 9 can be employed 
 for week's end figures, or even for daily figures. In other words, by 
 using the method in Schedule 9 a merchant can keep in touch with his 
 approximate stock on hand, estimated profits, etc., either monthly or 
 weekly, or twice weekly, or even daily, if he deems it advisable. 
 
 ^ 
 
24 
 
 Eetail Profits, Turnover and Net Worth 
 
 It will be noted, too, that Schedule 9 shows us that at no time 
 during the year was the cost value of the stock on hand as low as the 
 amount with which the year was started. The next **low" amount 
 was the valur of the stock on hand at the start of the fourth month, 
 
 viz., on June i — $21,463. , . ,. ti 
 
 The highest amount of stock on hand was that with which Decem- 
 ber was started, viz., $26,346. . 
 
 Now as to purchases; the heaviest purchases were made during 
 October and December, 1919, in each of these months the purchases 
 
 being about $8,440. .,.-.. T^ u 
 
 As to the sales, as can be seen, these were highest durmg December, 
 the next best months being November, August and May. 
 
 :ii| 
 
 JH 
 
 A 
 
 \ 
 
 CHAPTER IV 
 This Test Shows Whether Your Books Were Kept Right 
 
 THIS chapter is the fourth in my series based on the figures for the 
 year ended March 1, 1920, of an Atlantic coast store in a town of 
 less than 2,700 population, located about 20 miles from a much larger 
 
 in the first of these four articles I showed that during the twelve 
 months the store's sales amounted to about $100,000, whereof about 
 $35,000 worth consisted of groceries. Moreover, employing different 
 methods, in Schedules 1 to 4, 1 demonstrated that, exclusive of its cash 
 discounts, the store's gross profit for the year totaled $17,619 (or 18 
 
 per cent on selling price). , ,, . . t -,• -x i. 
 
 In my second article of the series I showed that, including its casn 
 discounts, the store's gross profit for the year amounted to $19,402 (or 
 about 20 per cent on selling price). In that same article, m Schedules 
 5 to 8, I listed the store's expenses, etc. And I showed that, sm^ 
 these expenses, etc., totaled about 12 per cent, the store's net profit 
 for the year ($7,847) averaged about 8 per cent on the seUmg price of 
 the goods which the store sold during the year. ^ , ^ , ^ ^ . 
 
 In the third chapter of the series, in Schedule 9, I tabulated for 
 various purposes the store's purchases, sales, ^^estunated" gross profit, 
 
 etc., month hy month, x i. i x^ 
 
 One purpose was to show how a merchant can readily so tabulate 
 his own figures as to be able to tell at any time how much his stock on 
 hand, etc., amounts to. Another purpose was to determme how much 
 the ''average stock" which the store carried during the year amounted 
 
 I wanted that average stock figure to enable me to determine how 
 many times the store ''turned'' its stock during the twelve months. 
 Through Schedule 9 I found that the **cost price" of the store s 
 ** average stock" for the year amounted to about $23,298; and then, by 
 dividing that sum into $80,360 (the cost-price of the goods which the 
 store sold) I learned that the store turned its *' average stock" about 
 three and one-half times during the year. ^ , .^ ,x 
 
 I here present additional schedules. Therem I show the results 
 of a test to which I have put this Atlantic Coast store's figures in order 
 to determine whether there was on hand on March 1, 1920, that amount 
 of "cash" which the store then should have had on hand (if all of the 
 various figures it sent to me were correct) . 
 
 25 
 
26 
 
 Eetail Profits, Turnover and Net Worth 
 
 ri i i i iiii i ii ii i i iii iii ii w i i iiinmtiiiitii'iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiniiiiiii!mitiiiiiiiiiniiiiiiiii'ui| 
 
 i 
 
 3 
 1 
 
 nimiiiiimiiiinimnnniiinmimtmmHiimmnmfmiimiimiimtimiiiffliimiiniiimiinnniiiiiiiniinniin 
 
 SCHEDUIiE 10 
 Cash Payments ( Synopsis) ^Year Ended March 1, 1920 
 
 Merchandise purchasee, lew returns to wllere. . — ••••••:•;• •®l'J!lSSo 
 
 ADD: Amount owed to eeUers at the START, March 1, 1919 l/>23.38 
 
 GIVES: Amount which the store would have paid for ff^*„^^^^ 
 
 S it had paid all the bins, AS RENDERED $82,739.90 
 
 But, at the year's end, the store still owed $1,173.93. 
 
 DEDUCT: Amount owed to sellers on March 1, 1920 ^»^^^-^^ 
 
 LEAVES: Face amount of bills (for goods) which the store 
 
 aetUed y-^i/li' ^^^-^^ 
 
 But before paying these bills the store "took on the 
 
 discounts, hence , ^ ^v _* -^ i tb9 7ft 
 
 DEDUCT : Cash discounts earned by the store i^iJiajo 
 
 Leaves : Amount actually paid, during the year, for GOODS ^^^'J|« Jo 
 
 Inward freight, expressage, etc Payments '^^'^ 
 
 DeUvery equipment Payment i^A^ASon 
 
 Expenses for the year toUled. • .- • • ... 110,465.00 
 
 But this total included the foUowing: Depreciation on 
 delivery equipment, $165; depreciation on store eouip- 
 ment, $100; supplies that had been carried over from 
 the previous year and therefore were not paid for this 
 year, $66.50. Hence we must 
 DEDUCT ^^^'^^ 
 
 LEAVES : •• #10^33.50 
 
 But the store did spend $123.70 this year for some sup- 
 pties which (because they were not used) it did not 
 include in the $10,466.00; hence 
 ADD ^^^'^^ 
 
 GIVES: Aetaal cash paid-for expenses 10,257.20 
 
 Total of the store's cash payments during year ended March 1, 1920. . . . $91,633.71 
 
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 :«j„,,i.,iiniiH.i.iii.ii«.iiiniiiiiimi«n.iiiii— mniinn— iiniimn«niiiiiiiii| 
 
 SCHEDULE 11 
 Cash Income (Synopsis)— Y^ear Ended Umrth 1, 1930 
 
 Sales for the year, less customers' returns. . . . ....••• •/••••;• ' :x:^{ ' ' ^^I'ss? 05 
 
 ADD: Indebtedneis of customers at the year's 8TABT (March 1, 1919) . ■ 4,555.25 
 
 Hence: If all customers had ''paid up" in full the store would have "««^-^j^^2,534.87 
 
 1,090.25 
 
 SStlLfTst^Z'aWoiiiiti;;^^^ $1,090.25, "went bad"; hence 
 DEDUCT: Bad-debts written off ^ 
 
 I 
 
 3 
 
 Again, «t ' the "!««•» END "good" eoBtoraera itiU owed the store 
 
 t5,«78.02; henee: 
 DEDUCT: Indebtednese of eustomere (M»reli 1, 19Z0) 
 
 $101,444.62 
 
 9 
 
 ti 
 
 
 
 / 
 
 5,678.02 
 
 
 LEAVES : Amdunt really "coUected" from customers $95,766.60 
 
 Inasmuch as there were no other cash-takings, this amount represents the store's 
 •ntire cash income for the year ended March 1, 1920. 
 
 IHflHIIHWHHIIIIItlllHHIIIIUHIHIIIUIHIII 
 
 inii««iiiHiiuHiimHiiiiuiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiniiiii"iii'"iiiiiiiiiniiiiiiiHHiiiiniiiiiiiiii"'ii"'" ' iiiiiiiiiiiiiiiinninniimnniiiiimnnittittiiniiimiimS 
 
 This Test Shows Whether Your Books Were Kept Right 27 
 
 In other words, whereas in my previous schedules I have had to 
 set up the various figures without particular regard to how they affected 
 the store's *^Cash Account," this time rttj main purpose is to ** audit" 
 all of those figures in the store's report to me which have a bearmg 
 on the handling of its cash. 
 -Here is this report: 
 
 Figures Store Included in Its Report 
 
 Merchandise on hand as per inventory (cost price) March 1, 1919, 
 $20,795.59. Merchandise on hand as per inventory (cost price) March 
 1, 1920, $22,880.22. Customers' accounts, March 1,1919, $4,555.25. Cus- 
 tomers' accounts, March 1, 1920, $5,678.02. Other resources, March 1, 
 1919, cash, $1,427.85 ; supplies, $66.50 ; store equipment, $600.00 ; delivery 
 equipment, $200.00. Other resources, March 1, 1920, cash, $5,560.74; 
 supplies, $123.70 ; store equipment, $500.00 ; delivery equipment, $900.00. 
 Merchandise liabilities, March 1, 1919, $1,023.38 ; merchandise liabiUties, 
 March 1, 1920, $1,173.93 ; merchandise bought during the year, less goods 
 returned to wholesalers, $81,716.52 ; cash discounts deducted from above 
 purchases, $1,782.78; merchandise sold during the year (selling price), 
 $99,663.81. From these sales must be deducted merchandise returned 
 by charge customers, $1,204.31 ; and returned by cash customers, $479.88. 
 Hence **net" sales were $97,979.62. Cost of running the business (in- 
 cluding $165.00 for depreciation on delivery equipment and $100.00 for 
 depreciation on store equipment; but not including bad debts, or ** in- 
 terest on investment," and not including Federal income tax as this 
 
 was paid by the individual partners g,,|,i,|||,,iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin!iiiiiiiniiiniiiiiiiinmiiiiinmiiinniiiiii«iiiiiniii!niiiimHiinnH 
 
 and not by the store), $10,465. This | | 
 
 amount, ^however, includes $66.50 | soHEDtLE la | 
 
 worth of supplies carried over from | cash Account (smnmaJr) | 
 
 the previous year. It does not in- | Yeaj- Elnded Marth i, loao | 
 
 elude $123.70 worth of supplies | ^r- | 
 
 , , , 1 1 i i.^ § Cash in bank Marcn l, = 
 
 which we are able to carry over to | jgig $ i,327.85 | 
 
 next year. Loss through bad debts, | ^ash^ on^ hand March i, ^^^^ | 
 $1,090.25. Delivery equipment | cash, income* 'duViig the | 
 
 bought (net) $865 00 | gJf^Uf Schedule ll 95,766.60 | 
 
 In Schedule 10, therefore, I am | j 
 
 able to show that (if all the figures | Total Dr $97,194.45 | 
 
 it sent me are correct) the store | J^dn * I 
 
 must have **paid out" during | ^ thJ**^r? """^ i 
 
 the year, in all, $91,633.71 in | See foot of Schedule lo 9i,633.7i | 
 
 .y , , ' ' I Hence, amount of cash = 
 
 **casn." I that ought to hare 
 
 In Schedule 11 again I am able | been in bank and on 
 
 1 xi_ i. /'i? 11 4.1, «««,^^.« U i band March 1, 1920 
 
 to show that (if all the ngures it | (^^^ ^hen was so in 
 
 sent me were correct), the store | bank and on i^a^^), | 
 
 .... Ill • 3 wa.8 .9 D,ODU. I* = 
 
 must have ' ' taken in " m all during i | 
 
 the year, in * * cash, $95,766.o0. itiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiniiMttiiiniimntnttiiiiiu^ 
 
28 Retail Profits, Turnover and Net Worth 
 
 Hence, in Schedule 12, 1 am ahle to show that, everything else being 
 correct, since it started the year with a **cash balance" of, in all, 
 $1,427.85, the store ought to have had on hand, at the year's end, a cash 
 
 balance of $5,560.74. uv ^i,^ 
 
 This amount (as can be seen m Schedule 8) really tallies with tne 
 amount of cash that the store reported to me as on hand at its year's 
 end, that is, on March 1, 1920. 
 
 As to Storeys Average Cash Discount Percentage 
 
 In Schedule 10 I show, too, that the face amount of the bills (for 
 goods) which the store settled during the year amounted to $81,565. 
 I also show that in paying these biUs the store deducted cash discounts 
 totaling $1,782. Therefore, in Schedule 13 I am able to show that the 
 store's cash discounts during the year averaged about 2 1/5 per cent 
 on the **bill price" of the goods that it paid for. 
 
 jiiinnuinnniinniiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiinnninni^ 
 
 SGHEDUIiE 18 
 
 a 
 I 
 
 Upon dividing $1,782.78 (the total of the store's cash discounts for 
 the vear) by $81,565.97 (the face amount of the merchandise bills which 
 the store settled during the year), we find that the store's cash discounts 
 averaged about 2 1-5 per cent on the cost-price of the goods involved. 
 
 i 
 
 Inmnninniiiiiiinuninimniiniiiwiuuiuiniiuiuiiiiii •■•iinuinniinniiiiiiimiHi ,,.,i..,....iiiiwiiiiiiiiiiiiiiiiiiiiiinuiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiini iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnininninnni..^ 
 
 In Schedule 9 I showed, among other things, the dollars and cents 
 cost of the Purchases— and the dollars and cents selHng price of the 
 sales— which the store made during each month of the 7®^^; ^ J ^7^^^®^ 
 there, too, that the purchases totaled (at cost price) about $82,445 and 
 that the sales totaled (at selling price) about $97,979. , ^ ^ . . , 
 
 Note that in the $82,445 (total of the purchases) I had to mclude 
 the $728.00 which were paid for inward freight, etc. 
 
 Each Month's Share of Purchases and Sales 
 
 Here therefore, to supplement those monthly purchases and sales 
 figures, I present, in Schedule 14, a list indicating what percentage 
 of the entire year's purchases— and what percentage of the entire year s 
 saleB—each month's transactions represented. 
 
 That is to say, counting the entire year's purchases as 100 per cent, 
 I divide each month's purchases by the $82,445 ; I thus learn what share 
 of the entire year's total each month's purchases represented. 
 
 How the Monthly Percentages Were Computed 
 
 For example, the purchases of March, 1919 (as I showed in Schedule 
 9) were $6,022. Upon dividing this amount by the $82,445 I get as a 
 quotient about 7 3/10. So, in Schedule 14, 1 show that the March, 1919, 
 purchases represented about 7 3/10 of the year's total. 
 
 I 
 
 I 
 
 \ 
 
 i 
 
 i^' 
 
 • h 
 
 ;* 
 
 J 
 
 • 
 
 This Test Shows Whether Your Books Were Kept Right 29 
 
 Next I take the purchases of April, 1919, which (as I showed in 
 Schedule 9) was $6,894. I divide this amount by the $82,445 and thus 
 I find that the April, 1919, purchases represented about 8 4/10 per cent 
 of the year's total, and I list the item in Schedule 14 accordingly. And 
 
 |iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii"iiiii""i"«''""»"'""^ ^^ ^^ *^^ ^^^ otner montns. 
 
 I I Similarly I handled the sales 
 
 scHEDUiiE 14 j figures for Schedule 14. The sell- 
 
 Showing each month^s share of | ing price of the goods sold during 
 
 I the Total Purchases and Total | March, 1919 (aS I showed in 
 
 I 1^1920^.'''^^ ^^'" ^''^^ ^^"^ I Schedule 9), totaled $6,271. Count- 
 I ' ' Percentage | ing the selling price of the entire 
 
 I Purchases Sales | ^^^^y^ g^j^g ($97,979) aS 100 per 
 I March, 1919 7» OJ | ^^^^^ j ^.^^^ ^^^ ^^^71 by the 
 
 ^J^^ 74 gr I $97,979 ; thus I find that the March, 
 
 I Ji^ .!!.!..... 8« 7" I l^l^> s^^s represented about 6 4/10 
 
 I July !!..!!!.!!... 9* T* I P^^ ^^^^ ^^ ^^® total for the year 
 
 I Aug. 9^ 9 1 and I enter the item in Schedule 14 
 
 I Sept 7» ?• I accordingly; and so on for each 
 
 Oct 102 g« I other month's sales. 
 
 Nov 9« 9 I 
 
 Dg^j 102 12* I Valuable for Comparisons 
 
 j January, 1920 . . . . 6» 8^ I ^^^^ ^ schedule (as Schedule 
 
 I ^®^ •• ^^ I 14) containing as it does, compara- 
 
 i Total . . .100% 100% I *iv^l5^ speaking, only a few figures, 
 
 I I can readily be prepared by each 
 
 I The smaUer figures in this | store at each year's end and may 
 
 ! ^^l represent tenths of 1 | ^^^^^ j^-^j^^ serviceable in making 
 
 I j comparisons. 
 
 iiiiiiiiiiiiiiiiiiiiiiiiiiii nil iiijiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiniiiiiniiiiiiiiiiiiiininiiiiniiiiini xjp to tMs poiut, as my readers 
 
 have noted, all the figures I have scheduled in this series have been 
 based on the store's business as a whole. 
 
 In the concluding chapter of this series J purpose to tabulate, 
 in as comprehensive a manner as practicable, figures for each depart- 
 ment in the store. That is, I will give details as to the kind of mer- 
 chandise carried in each department; the amount of stock with which 
 each department started and ended the year ; the total of each depart- 
 ment 's purchases and sales; each department's gross profit, etc. 
 
t f 
 
 CHAPTER V 
 
 How to Find the Weak Spots in Your Merchandising 
 
 THIS is the fifth installment of my analysis of the figures for the 
 year ended March 1, 1920, of an Atlantic Coast store located in a 
 town of less than 2,700 population, about 20 miles from a much larger 
 center. 
 
 Previous Chapters '•Reviewed" 
 
 The store's gross profit for the y^diT, exclusive of its cash discount 
 (as can be seen in Schedule 17), totaled $17,619, or 18 per cent on 
 selling price. These figures, be it noted, furnish added proof of the 
 correctness of my figures in Schedules 1 to 4. 
 
 In Schedules 5 to 8 I carefully detailed the store's gross profit, 
 expenses, net profit, increases in resources and liabilities and showed 
 how the net profit of $7,847 (or 8 per cent on sales) was reached. 
 
 In Schedule 9 I showed one of the simplest methods of ** estimat- 
 ing" the amount of stock on hand at each month's end, of learning the 
 ** approximate amount" of each month's gross profit, the ** approxi- 
 mate" cost-price of the goods sold during each month, the ** average 
 stock" which the store carried during the year, how many times the 
 store's stock was turned, etc 
 
 A schedule of that kind can easily be prepared by any merchant 
 and will prove of great value to him in his buying and selling, in his 
 advertising, in connection with his fire insurance, etc. The schedule will 
 keep him posted regarding his gross profit also, so he can judge whether 
 he is properly providing for his expenses, net profits, etc. 
 
 The work on the schedule is so simple, moreover, that a merchant 
 can prepare a separate one for each of his departments and thus follow 
 up his merchandising to much better advantage than otherwise. 
 
 In the fourth chapter I presented Schedules 10 to 14, wherein I 
 made a thorough analysis of the store's cash income and expenditure, 
 showed how to figure its cash discounts percentage — ^which averaged 
 about 2^4 per cent on the cost price of its purchases — showed how to 
 find what percentage (share) of the year's total each month's purchases 
 and each month's sales equaled, etc. 
 
 In Schedule 15 herewith I show how the store lists the contents of 
 each of its 10 departments. In Schedule 16, herewith, I have listed the 
 gross sales of each department — that is, the amount before customers' 
 returns were deducted. I also show (for each department) the total 
 
 80 
 
 t\ \ 
 
 j 
 
 \ 
 
 How to Find the Weak Spots in Your Merchandising 31 
 
 of tie goods returned by cash customers and the total of the goods re- 
 turned by charge customers, as well as the grand total of each depart- 
 ment's returns and of the store as a whole. 
 
 gLUIIIIIIIIIlllllllllllllllllllllllHIIIIIIIIIIIIIIUIIIIIIIIIIIIIlHIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIHinillll"^ 
 
 I SCHEDULE 15 
 
 I How the Store Lists the Contents of Each of Its 10 I>epartmenta 
 
 I 1 OEOCEBY DEPARTMENT— All eatables. 
 
 I 2 DRY GOODS— All woolen and cotton piece goods; bed furnishings, laces; em- 
 
 I broideries; yarns, curtains and draperies; veils and veiling; table cloths, napkins 
 
 I and linens. 
 
 I 3 NOTIONS— All threads and needle goods of all kinds; ribbons; jewelry; tninka; 
 
 I suit cases; bags and purses; umbreUas. 
 
 I 4 SHOES — ^AU. leather and rubber footwear. 
 
 i 5 FURNISHINGS— Men's and boys' pants, overalls and shirts; men's, boys' and 
 
 I ladies' neckwear; waists; skirts; hats; caps; gloyes; suspenders; and all fumiah- 
 
 1 ings for all the family. 
 
 I 6 HOSIERY AND UNDERWEAR— All knit goods, hosiery, underwear, sweaters. 
 
 I 7 CLOTHING — ^All ladies' suits and coats; men's and boys' suits and overcoats; also 
 I children's wear. 
 
 ^ 8 HARDWARE — Curtain poles and window shades, glassware, chinaware, enameled 
 ware, brooms, shovels, hoes, rakes, knives, stoves, lamps and lanterns, and all house 
 furnishings. 
 9 FLOOR COVERING — Carpets, rugs, linoleum, matting, oilcloth. 
 I 10 SILK (Formerly in with Dry Goods)— All silks, crepes, velvets. 
 
 ^lllllllllllllllllllllllllllllltllllllllltllUIIIUIIIIIIIIIIHIIIIIUIIlllllllllllilillllllllllllllUIIIIUIUHIIIIIIIIIIIIIUllllin 
 
 In one of the letters which the store sent me, I was informed that 
 its cash sales represented about 55 per cent of the total and that the 
 charge sales represented the remainder, or 45 per cent. As can be seen 
 at the foot of column 1 of Schedule 16, the store's gross sales for the 
 year totaled $99,663. We may assume, therefore, that the gross cash 
 gales— 55 per cent— equaled $54,663, and that the charge sales — 45 per 
 cent — equaled the remainder, viz., $45,000. 
 
 As to Customers* Returns 
 
 Upon dividing the total cash returns, $480, by $54,663, I find that 
 the cash returns equaled less than 1 per cent of the gross cash sales. 
 Upon dividing the total charge returns, $1,204, by $45,000, 1 find that the 
 charge returns represented less than 3 per cent of the gross charge 
 sales. Then, upon dividing the total returns, viz., $1,684, by $99,663 
 (the total gross sales), I find that all the goods which the customers 
 returned to the store during the year averaged less than 2 per cent. 
 
 In column 5 of Schedule 16 1 show the amount of each department's 
 net sales. (By net sales I here mean, of course, that amount which is 
 left after deducting the customers' returns.) 
 
 Each Department's Share of Business Done 
 
 In column 6 of Schedule 16, moreover, I show what share — ^that is, 
 what perc&ntage — of the store's entire net sales was contributed by 
 
i 
 
 32 
 
 Eetail Profits, Turnover and Net Worth 
 
 Sdl of its departments. To illustrate how I found these percentages, 
 let me take the figures of the grocery department as an example : The 
 grocery net sales (as shown in column 5 of Schedule 16) totaled $34,636. 
 
 yiiiiiiiiuiiiiuiiiiiiuiiuiiiiiiiiiiiiiiiiiiimmiiiii^ 
 
 » I 
 
 How to Find the Weak Spots in Your Merchandising 
 
 33 
 
 llitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiuiiiHiiiinniiiiiiMiiiniiiiiiiiiiiiiiiniiiiiniin 
 
 rt 
 
 For details of each department's goods see Schedule 15. 
 
 The smaller figures in column 6 are TENTHS (of 1 per cent). . g 
 
 To find each department's percentage for column 6, divide the department a item in = 
 
 column 5 by the total of column 5. , . , , ^ j ^.v *. 4.v» <.4.».<.>. i 
 
 a Upon dividing the total of column 4 by the total of column 1 we find that the store s | 
 
 I customers' returns for the year equaled less than 2 per cent of the gross sales for the | 
 
 i period. , . i. _4. 1 
 
 I For other percentages regarding customers' returns see text. j 
 
 |„„„„„„„u,, HiHiiiiiiiiii iiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiHiiiti iitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiii iiiiiiiiiiiiiiiuiii'i»"'i^' 
 
 Upon dividing that amount hy $97,979 (the total net sales) I found that '' 
 the grocery (net) sales exceeded 35 per cent. I entered the grocery \ 
 percentage in column 6 of Schedule 16 accordingly. 
 
 The smaller figures in this percentage column of Schedule 16 repre- 
 sent tenths of one per cent; hence the grocery net sales share is to be ) 
 read thus : '*35 3/10 per cent of the total net sales." * 
 
 One of the main purposes of Schedule 17 is to find each depart- 
 ment's gross-profit exclusive of cash-discounts. My first step, there- 
 fore was to determine the cos^price of the goods sold by each depart- 
 ment during the year. Columns 1 to 5 of Schedule 17 show precisely 
 how this is done. 
 
 i\ 
 
 ( 
 
 1 3 
 
 i;iiiiiniiiiiiiiiiiiiiiiiiiiiiiii;iiniiiiiiiiiiiiiiiiii;iiiiii!iiiiitiiiiiiiiiiiitniiitiiiiitiiiiiitiniiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiin 
 
■,!■ 
 
 E 
 
 34 
 
 Retail Profits, Turnover and Net Worth 
 
 I 
 
 Each Department's Share of Gross Profit ) 
 
 Then to find the gross profit of each department (exclusive of it^ 
 
 «.sh ^:rountsrall I had to do was to subtract the amount in column 5 
 
 '--£-s':£^!^.Ti:i^i^i^n.s ,ross .r^^^i 
 
 L1*ch*:tn7Tofonl^^^^ 
 
 Tsee Si 8), but aJhow to find the percentage on cost pnce (see 
 
 ""^T the foot of Schedule 17 I have given a formula which shows 
 prechely how the figures for the various column are "omput^^^^ To 
 avoid misunderstanding, however, we repeat that to ^d me per 
 ZXJes for column 8 I divided the amount m column 7 by the cor- 
 ^CSU a^oSTin column 6. To find the percentages for eotojn 9 
 i r?ded the amount in column 7 by the correspondmg amount m 
 
 ""'Tnd'emeath the Schedule 17 I tell how to f temm^^^tr'sTJ^ 
 ment's percentage-share of the stock on hand at the fiscal year s start 
 
 and end. 
 
 To Find Each Department's Customers' Returns Ratio 
 
 A different method is to be used to find what P^^^J^gVor 'tto 
 department's^oss sales was returjje^by ^^^ -^--„,^-rs 
 
 purpose we must f ™ ^^/^^ 16) by the department's total gross 
 (shown m column 4 of ^^^^^^f '^^V^^^ to illustrate: According 
 
 sales sho^ in cohmn } ^Jj^Sch^d^l^^^^ ^^^^^^^^^ ^^^^^^^ 
 
 : iTSwol oSood . Upon dMding'by the shoe gross sales (shown 
 ^tSn r^?sSnle 16)! viz., $11,981, 1 find thaVhe«ho« returns 
 m ouiumu . * ^^ ^^gg giloe sales for the year. 
 
 '%vtsU^Ms s^e method I Z obtained the following per- 
 15y using tms °f^^,, „^^prv mece coods, notions and silk 
 
 sales; in the men s a°f Y/™!r rent In the knit goods department 
 the floor coverings they were about ly* per cent 
 
 n 
 
 . 
 
 ^ 
 
 CHAPTER VI 
 
 Buy Your Gk>od8 Right, Then Mark Them Right and Sell 
 
 Them Right 
 
 A QUESTION that is of vital importance to merchants everywhere 
 ^^ is that of how to properly mark goods. Many a retailer handicaps 
 not only his own progress, but also that of his more immediate com- 
 petitors through a lack of knowledge as to the computing of costs 
 and of gross profit percentages. 
 
 Goods must be bought ** right" and then must be marked and sold 
 **righf That is, there must be added to laid-down cost price such 
 a percentage as will, in turn, produce on selling price that percentage 
 which — ^after providing for expenses, shrinkages, etc. — ^will give the 
 merchant a fair net percentage of profit. 
 
 And in determining what is a **fair net percentage of profit" for 
 him, not only his investment, but also his ** labor" ought to be duly 
 taken into account. 
 
 The following outline will give a general idea of simple methods 
 to be pursued. 
 
 Providing for Profit in Pricing Goods 
 
 Suppose such a merchant wishes one of his departments to sell 
 its goods at a gross profit equivalent to 33 1/3 per cent on their selling 
 price. The merchant ought to know that to produce such a result the 
 goods must be soi>d at an average advance equivalent to 50 per cent 
 of their cost price. 
 
 Why? Because a gross profit of 50 per cent on an article's cost 
 price is equal to only 33 1/3 per cent on its selling price. 
 
 Don't Forget the Shrinkages 
 
 He must not forget, though, that for various reasons — ^f or example, 
 because of the leakages, reductions and other shrinkages which occur 
 before goods are sold — ^if the department is really to show an average 
 igross profit equivalent to 50 per cent on the cost price of its goods, he 
 must sell many of those goods at a far higher percentage above coslj 
 than the 50 per cent. 
 
 And that is true regarding goods, no matter what the percentage 
 of profit desired, or needed, may happen to be. 
 
 To put the matter a little differently: Wise merchants do not 
 haphazardly add a certain profit (percentage) to the cost of their goods 
 
 35 
 
36 
 
 Retail Profits, Turnover and Net Worth 
 
 Buy, Mark and Sell Your Goods RigM 
 
 37 
 
 and then, let us say, '*by chance '* learn what percentage of the selli> ag 
 price their gross profits will represent. No. They determine in advam 3e 
 what percentage of their selling price they wish their gross profit ' co 
 equal; and then after making due allowance for shrinkages, etc. (arid 
 by adding the necessary percentage to cost price), they fix their sellin 'g 
 
 price 
 
 Before going further, let me cite some concrete examples : 
 
 Some Concrete Examples 
 
 I 
 
 When an article is to be sold at a gross profit equivalent to 25 per 
 cent on its selling price it is necessary to mark that article at a price 
 which is not less than 33 1/3 per cent above its cost price— because . 
 a gross profit which is equivalent to 33 1/3 per cent of an article's cost 
 price is equivalent to only 25 per cent on that article's selling price. 
 Tf) illustrate * 
 
 Take an article which costs $1.50 and which the merchant wishes to 
 sell at a gross profit equivalent to 25 per cent of its selling price. 
 
 Now 33 1/3 per cent of the cost price ($1.50) is 50 cents, and if the 
 50 cents is added to the $1.50 we get $2.00, the price at which we 'will 
 try to sell the article. If the article is sold for $2.00 the gross profit 
 thereon— 50 cents— as can be seen, will represent only one-fourth of 
 the selling price (and one-fourth of anything is 25 per cent of that 
 
 But, that same gross profit of 50 cents, while it is, as just said, 
 only one-fourth (25 per cent) of the selling price ($2.00), is nevertheless 
 equal to one-third (33 1/3 per cent) of the cost price ($1.50). 
 
 Take another illustration: 
 
 If an article which costs $3.00 is sold for $4.00, then the gross profit 
 ($1.00), while equivalent to only one-fourth, 25 per cent, of the $4.00 
 selling price, is nevertheless equivalent to one-third (33 1/3 per cent) 
 of the $3.00 cost price. 
 
 To repeat: A gross profit of 33 1/3 per cent on an article's cost 
 price is equivalent to only 25 per cent on its selling price. 
 
 Dififerent Ratios 
 
 Now to take a different percentage : 
 
 If an article which costs $100 is sold for $125, the gross profit is 
 
 $25.00. 
 
 This gross profit being one-fourth of the cost price ($100) repre-* 
 sents 25 per cent on that cost price. But, at the same time that gross 
 profit ($25.00) represents only one-fifth of the selling price ($125); 
 hence represents only 20 per cent thereon. ^ 
 
 Thus, it is to be noted that the merchant who desires to effect a 
 gross profit which is equivalent to 20 per cent on the selling price of 
 an article, must add to the cost price of that article a gross profit which 
 is equivalent to not less than 25 per cent on that cost price. 
 
 \ 
 
 I 
 
 I 
 
 r 
 
 To repeat: A gross profit of 25 per cent on an article's cosi price 
 is equal to only 20 per cent on its seUing price. 
 
 "Review" 
 
 Let none of my readers believe, however, that all that any mer- 
 chant will have to do in order to obtain a gross profit of 33 1/3 per cent 
 on the sdlmg price of all his goods will be to add 50 per cent to the laid- 
 down cost price of each article. 
 
 And don't let it be thought that to obtam an average gross profit of 
 25 per cent on the sdlmg price of (Al of one's goods one need smiply 
 add 33 1/3 per cent to the laid-down cost price of each article. 
 
 Again, to produce an average profit of 20 per cent on the seUxi^g 
 price of all of one's goods one mnst do more than merely slap 25 per 
 cent on the laid-down cost price of each article. 
 
 Price for Each Lot Must Be Gauged 
 
 As is well known, in any department, or store, in which an average 
 gross profit equivalent to 33 1/3 per cent on selling price, for example, 
 is desired, to produce the desired average many of the items must, as 
 suggested above, be sold at a price which involves a "profit' not only 
 of the equivalent 50 per cent of their laid-down cost price, but (withm 
 the "law") of a far higher rate. , . x x ,„ 
 
 And why? Because other goods in the same department, or store, 
 may have to be started at "a profit" which represents only 25 per cent- 
 er even less— of their laid-down cost price. 
 
 In a word, not only must market conditions, style, competition, etc., 
 be duly considered, but the fact that during the year there is a con- 
 siderable amount of shrinkage-due to reductions m prices, over- 
 measuring, pilfering, etc., must be constantly borne in mmd. 
 
 Consequently each wise merchant so marks each lot of goods tnat 
 after all shrinkages, reductions, and all other incidentals, as freight 
 and expressage, workroom costs, etc., have been taken into considera- 
 tion, his department or store will at the season's or year's end show 
 the desired percentage of gross profit on selling price. And that is 
 
 not all. 
 
 How Big Stores Follow Up Profits 
 
 In the big stores, in order to help each department head produc« 
 _e desired results, he is kept informed as closely as possible in regard 
 the condition of his stock, etc. . 
 
 Begnlarly in such stores the "merchandise man" and firm receive 
 'rom the office a list showing the stock on hand, purchases, sales, amount 
 of goods ordered (and still to come) in each department. And in these 
 lists are noted not only "this" year's figures, but also the correspond- 
 ing figures fif ' ' last ' ' year, etc. 
 ' And if the figures of a department indicate that there is something 
 
 - '/■ 
 
 I 
 
 (1 
 
 I 
 
 ..^a^B^^ 
 
n 
 
 3g Retail Profits, Turnover and Net Worth 
 
 wronir with it^for example, that its stock is increasing at a time when 
 it ought to he decreasing-the buyer is at once informed and the 
 proper steps are taken in order, if possible, to locate the cause of the 
 trouble and promptly remove it. , ^ i. i.u 
 
 To simplify the figures as much as possible, and to present them 
 in convenient form for quick reference, I give in Schedule 18 paraUel 
 columns of percentages. 
 
 «liwiniiiiiiiimiimiiiiniiiiiiiiniiiii>iii>ii">iiiiiiiii><*^^^ 
 
 C5 
 
 I 
 
 "A" 
 
 Gross Profit Per- 
 centage on 
 Selung Price. 
 50 per cent 
 
 35 
 331/3 
 
 31 
 30 
 
 28 4/7 
 
 28 
 
 27 
 
 SCH£DULiE 18 
 
 a 
 
 <( 
 it 
 ic 
 
 a 
 fi 
 
 Corresponding 
 
 Percentage on 
 
 Cost Price. 
 
 100 per cent 
 
 537/8 
 
 50 
 
 45 
 
 42 6/7 
 
 40 
 
 39 
 
 37 
 
 a 
 
 fC 
 CI 
 
 it 
 n 
 a 
 
 C( 
 
 tt^fp 
 
 Gross Profit Per- 
 centage on 
 Selunq Price. 
 25 per cent 
 23 
 
 211/4 
 
 20 
 
 18 
 
 i2y2 
 
 10 
 
 (( 
 
 fi 
 ii 
 ii 
 <c 
 ii 
 
 4i^fP 
 
 Corresponding 
 Percentage on 
 
 Cost Price. 
 33 1/3 per cent 
 
 297/8 ** 
 
 27 
 25 
 22 
 
 14 2/7 
 111/9 
 
 a 
 
 II 
 
 1 
 
 L-™«^^^^^^ 1 m p.... mmmm mmmmmmmmmmtmmmmmm ....<- « — « » ^ 
 
 In each of the two columns headed "A" I present the avebage 
 gross profit percentage some may desire to have on feHt«^ price. 
 Next to each of such percentage I show, in the parallel wlumn (headed 
 "B"), which percentage on cost price the neighbormg percentage 
 reoresents approximately. , 
 
 Don't forget, though, that as suggested above, marking goods 
 a certain price is one thing, seMm^ them at that price may P^ove to be 
 a very different thing. Hence, deficiencies must be carefuUy guarded 
 against in advance. 
 
 CHAPTER VII 
 
 Stock Record Shows at Glance What You Want to Know 
 
 LIVE merchants know how essential it is to be able to keep in close 
 touch with what is, or is not, selling; with what is, and what is not 
 in stock; with what is, or is not, ** paying'' the necessary profit. One 
 of the simplest systems employed for such purposes is that used by 
 the Barmann Shoe Co. of New York. While this is a shoe stock system, 
 it can readily be adapted by any merchant for various other kinds of 
 merchandise, such as garments, waists, underwear, hosiery, clothing, 
 
 hats, rugs, etc. 
 
 The Barmann Shoe Co., be it noted, tjonducts two stores m New 
 
 York City. 
 
 The system is simple, inexpensive, takes little time to run; yet 
 day by day it can be made to answer the following vital questions, 
 almost in a glance I 
 
 Vital Questions Answered Daily 
 
 1. What is (or what is not) on hand, in each size, color, width, 
 
 style, quality, etc.t . ,, . i.. ,, 
 
 2. Which goods are (and which goods are not) moymg ** right 
 (and hence, which goods ought to be pushed, ** reduced, '(^ otherwise 
 carefully followed up) T 
 
 3. What is the total quantity bought (of each item) T 
 
 4. What is the total quantity sold (of each item) t 
 
 5. What is the gross profit on each item sold ** yesterday"! 
 
 6. What is the total gross-profit for ** yesterday"! 
 
 The kind of stock record, or permanent inventory, which the Bar- 
 mann Shoe Co. is using, therefore, ought to be of great value to any 
 merchant or other buyer of merchandise, particularly of staples, as a 
 guide in making his purchases. 
 
 In the accompanying **form" I show a fragment of the top section 
 of one of the loose leaves, kept in a binder, which, simple as it is, is 
 practically the whole ** works." (See Schedule 19.) 
 
 Each leaf is about thirteen inches square. Both sides of the leaf 
 are divided horizontally into three sections (so that on each leaf trade 
 can be kept of at least six different stock numbers). 
 
 Underneath each stock number, too, there is room, horizontally, 
 for keeping track of eight widths^thsit is, from AAA to F. Vertically, 
 
 39 
 
4i 
 
 40 
 
 Eetail Profits, Turnover and Net Worth 
 
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 stock Record Shows at Glance What You Want to Know 41 
 
 as can be seen, each section of the sheet is so ruled as to provide for 
 every size from to 13%, etc. 
 
 Simple Stock Numbering Plan 
 
 Once the system is in running order the task of keeping it up to 
 date is a matter of a * * few minutes ' ' daily. To get it started, of course, 
 calls for some painstaking work; but it is well worth it. 
 
 In Mr. Barmann's case, the first step was to divide the stock of 
 shoes into specific groups — ^men's, women's, etc. — so as to be able to 
 reserve sets of stock numbers for each group. Thus, in his stores on 
 infants' cacks, the stock numbers run from 1 to 100; on infants' wedge 
 heels the numbers run from 100 to 200; on infants' welts, sizes 6 to 8, 
 from 200 to 300; on children's welts, sizes 8y2 to 11, the stock numbers 
 run from 300 to 400 ; and so on throughout the entire stock. 
 
 My readers will appreciate my adding that to simplify matters, 
 Barmann's give **odd" stock numbers to lace shoes and *'even" num- 
 bers to button shoes. And they go further, viz., to take care of colors, 
 each of certain groups is divided into four sub-groups ; the first quarter 
 being used for white shoes ; the second quarter of the group for brown; 
 the third quarter for blaclc, and the remaining quarter of the group for 
 combinations and novelties. 
 
 Thus the stock number given to a shoe instantaneously describes it. 
 To illustrate: In the form accompanying this article the shoe illus- 
 trated is number 1569, an **odd" number. Therefore, the shoe must be 
 
 a**lace," etc. 
 
 In the stock record binder the loose leaves run in rotation accord- 
 ing to the stock numbers. Thus it takes but an instant to turn to the 
 
 record of any shoe. 
 
 Start with Inventory 
 
 To inaugurate such a system one ought to be^n after an inventory- 
 has been taken and give to the shoes on hand that are to be re-ordered 
 a stock number from the group in which they belong (so that they can 
 be entered on the proper sheets in the record according to their num- 
 bers, widths, sizes, etc.). Then, as new goods arrive they must be 
 given the lowest unused stock numbers in the group to which they 
 belong, and be entered in the record accordingly. If desired, stock 
 numbers can be given also to rubbers, hosiery, findings, etc. 
 
 Each Store's Stock Controlled Separately 
 
 Barmann's, as said, have two stores, which they number Store 1 
 and Store 2 ; B. F. Barmann looks after the one branch store and A. C. 
 Barmann looks after the other. So as to keep track of the goods of 
 each branch separately, they use white loose leaves for the stock record 
 of Store 1, and yellow sheets for Store 2. They keep the two sets of 
 sheets in the same binder, but by themselves— jn&t as though the sheets 
 were in separate binders. 
 
 
42 
 
 Eetail Profits, Turnover and Net Worth 
 
 As shown in the accompanying form, stock number 1569, bought 
 from the Thos. H. Cohen Co., is a woman's black, glazed kid, military- 
 heel, **lace." Its cost price (in code) is **G I K,*' and its selling price 
 (in plain figures) is $11.00. 
 
 As shown at the left-hand side of the form, near the top, there 
 came into Store No. 2, on Jan. 7, 1920, a shipment of 36 pairs of these 
 shoes. After the shoes had been carefully compared with the order 
 copy and bill, referring to them, their arrival was duly noted in the 
 record in ink. The total number of pairs received, 36, and the date on 
 which they came in, Jan. 7, 1920, were noted, as said, in the upper left- 
 hand comer. 
 
 Details of Goods Received Entered in Pencil 
 
 Then in pencil, one by one, according to the sizes received, the 
 twelve B's were noted, as shown in the form ; next, the twelve C's were 
 noted ; and then the twelve D 's. As can be seen in the form, excepting 
 in the case of the D's, there was only one shoe of each size and width 
 to be noted. In the D's, in sizes 5, 5i/2> and 6, two of each came in — so 
 two strokes (//) had to be entered in each of the three proper size 
 columns. If any more of these shoes would come in, the subsequent 
 arrivals would be recorded in the same manner; first, the total would 
 be entered at the top in ink; and then the individual sizes (and widths) 
 at the bottom, in pencil. Thus, by looking at the top of each stock 
 number we can, at any time, see how many have come in. 
 
 How Sales Are "Recorded" 
 
 Now as to the sales: When a salesperson sells a pair of shoes 
 he notes on the saleslip covering the transaction the selling price, also 
 (a) the stock number (b) the size, and (c) the width of the item. 
 Each morning the previous day's saleslips are laid in rotation, accord- 
 ing to the stock numbers they contain, and then the stock record is 
 corrected as follows : 
 
 Let me use the 1569 shoe as an illustration : Both of the two 5D'8 
 were sold, hence the two 5D strokes were erased and the space left 
 blank. The same is true of the 5i/^, and 6 D*s; that's why those spaces 
 are blank, also. In a word, when all of a certain stock number have 
 been sold its size spaces will be entirely blank. 
 
 To Determine Total Sales 
 
 At the season's, or year's end — or at any other time — under each 
 stock number the pencil figures (indicating the stock left on hand) can 
 be totaled, almost in a glance. By deducting such total from the total 
 receipts of that shoe (shown in ink in the upper left-hand portion of 
 that stock number) one instantly determines how many of that shoe 
 have been sold. To illustrate, suppose that of 1569, we bought only the 
 36 recorded, in ink, in our illustration; and suppose that at the end 
 
 f\ 
 
 t 
 
 stock Record Shows at Glance What You Want to Know 43 
 
 of the season the pencil figures in the 1569 record show that there are 
 only three pairs left on hand, it takes but an instant to determine that 
 33 pairs of 1569 were sold in the period indicated (viz., since Jan. 7, 
 1920). 
 
 Other Advantages 
 
 The merchant who, in following up his stock, has such a record 
 to refer to can more readily keep in touch with slow sellers, and thus 
 more advantageously dispose of them, can keep his stock freer trom 
 broken lines, can gauge re-orders, etc. , . ^ u 
 
 Again, in case of fire or burglary loss, the record ought to show 
 almost to a pair how much stock was on hand when the record was last 
 corrected. And again, since each stock number shows (in code) the 
 cost price of the shoes recorded thereunder, the employe who keeps 
 the record can, day by day, if so instructed, easUy note on a rough sheet 
 (to be used only for this purpose) the gross profit made on each pair 
 of shoes sold on the previous day. 
 
 It will take but a few minutes to foot these notations and thus 
 learn daily the total gross profit on the shoes that were sold. 
 
 And, be it noted, too, this plan saves work and worry in other ways ; 
 for example, it obviates the need for marking the cost-price on the shoes, 
 or tag, or box, etc. The stock number is the key to the cost, and only 
 the boss, or the record keeper, can get at it. 
 
C31APTER VIII 
 
 What Share of Rent Are You Paying for Your Part of 
 
 Selling Space? 
 
 TN Schedule 20 (covering department distributions) there is indi- 
 -"- cated how large— or how small— a share of the rent chargeable to 
 the selling area in a well known eastern Pennsylvania store was appor- 
 tioned directly to each of its selling departments. The schedule, as 
 can be seen, shows what changes were niade in such shares during the 
 three years in the period ended Dec. 31, 1919. 
 
 The smaller figures at the end of each item represent tenths of 1 
 per cent I print the ratios in this way so as to make it more easy 
 for my readers to read and remember them. 
 
 In order to indicate how the value of the space occupied by each 
 department was gauged, the store in question was kind enough to give 
 me the following details : 
 
 How Department Apportionment Was Made 
 
 To get figures on which to base the rental charges, the space oc- 
 eupied by each department as well as its location was taken into con- 
 sideration by five employes in the store, each acting separately. These 
 f[ve were respectively an office man, auditor, buyer, floorman and sales- 
 person. 
 
 They laid out one section on the main floor, and for the time being 
 assumed it was worth $100. Then, using that space as a base, each one, 
 independently, estimated and computed the value of all the space 
 occupied by the selling departments. 
 
 How Estimates Were "Checked" 
 
 The results of the five tabulations were compared so that abnormal 
 ratings could be adjusted. Then the five figures were added together 
 and their total was divided by five, so as to strike the average. 
 
 This method, we believe, gives us a fair basis for rent apportion- 
 ment among the selling departments, and has never, to our knowledge, 
 caused any adverse criticism. 
 
 ''The balance of the store rent is charged to the not^-selling depart- 
 ments—but, of course, eventually reaches the selling departments in the 
 distribution of the 'overhead." " 
 
 What Share of Rent Are You Paying! 
 
 45 
 
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 utmiiiiiiiiiitiiiiiiiiiiiiii 
 
 Eetail Profits, Turnover and Net Worth 
 
 SCHEDUUS 21 
 
 Basement 13^ 
 
 First floor 44* 
 
 Second floor 25* 
 
 Third floor 8» 
 
 Fourth floor 5* 
 
 Fifth floor 3» 
 
 Total lOOfo 
 
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 as well as that which was not used for selling — ^the rent was divided 
 as shown in Sdiedule 21. 
 
 \l 
 
 CHAPTER IX 
 
 Cash Discounts for Three Years Compared at a Glance • 
 
 DEPARTMENT Schedule 22 shown herewith is based on statistics 
 generously supplied by an eastern Pennsylvania store. For each 
 department in that store I name in the schedule three ratios; these 
 ratios indicate what percentage on the ** cost-price" of the respective 
 department's paid-bills its (the department's) cash discounts for the 
 years 1917, 1918 and 1919 averaged. 
 
 To briefly outline how all the ratios contained in the schedule were 
 computed, let us use the 1919 Art Embroidery item as an illustration : 
 
 Year's End Work 
 
 After the close of the year 1919 to find the 1919 cash discount 
 average-percentage for the art embroidery department, the total of 
 the dollars and cents amounts of the art embroideries' 1919 cash dis- 
 counts was ascertained and was divided by the ** cost-price" total of 
 the art embroideries' 1919 paid-tills. 
 
 The same method was, of course, employed to find the art em- 
 broidery department's 1917 and 1918 average-percentage. And, 
 naturally, the method that was used in the case of the art embroideries 
 was used also in the case of all the other departments in the store. 
 
 The smaller figures at the end of each item in our schedule repre- 
 sent tenths of 1 per cent. 
 
 It will be noted that in Schedule 22 the departments appear in 
 alphabetical order. They have been presented in this way in order to 
 make it easier for readers to locate the respective items. Care has been 
 taken too, to present with as much detail as practicable, the ** make-up" 
 of each department. For example — ^the schedule clearly shows that in 
 the Notions department there are not only the restricted groups of 
 items which some stores include in ** Notions," but also leather goods, 
 perfumery, druggists' sundries, toilet articles and hair goods. 
 
 At the foot of the second section of the schedule is shown what per- 
 centage on the cost price of the entire store's paid bills its cash 
 discounts averaged during each of the three years. As can be seen, 
 during 1917 the store's cash discounts averaged almost 4%; in 1918 
 they averaged about 3%% ; in 1919 they averaged a little over 3%. 
 
 In all cases, as said, these percentages are based on the cost price 
 of the goods covered by the bills that were paid, 
 
 47 
 
48 
 
 Retail Profits, Turnover and Net Worth 
 
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END OF 
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