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To Ascertain Per cent of Profit or Loss.-Given, the gain or loss, to find the per cent:

Rule.---Take the difference between the net cost and the amount received from the sales, and divide by the gross cost, and the quotient will denote per cent of profit or loss. This is the old rule of dividing the gain or loss by the number on which the per cent is reckoned to ascertain the per cent of profit or loss.

To Ascertain Profit or Loss in Dollars and Cents. Given the cost and per cent of profit or loss:

Rule.-Multiply cost by per cent of profit or loss, and the product will be profit or loss. Also find difference between net cost and amount received from sale of merchandise.

To Ascertain Per cent of Profit.-When net sales and gross profit are given:

Rule.-Divide the amount of profit by the amount of sales, and the quotient will be per cent of profit. (This is the old rule of dividing the gain or loss by the number on which per cent is received to find the per cent of gain or loss.)

To Ascertain Profit in Dollars and Cents. When the amount of net sales and per cent of profit are given:

Rule.-Multiply net sales by per cent of profit, and the product will be profit. Also subtract net sales from gross sales.

To Ascertain Per cent of Profit.-When net purchases, gross sales, and inventory are given, to ascertain per cent of profit:

Rule.-Deduct purchases from inventory, and the difference will be net sales. Subtract net sales from gross sales, and the remainder will be gross profit. Divide gross profit by net sales, and the quotient will be rate per cent of profit.

To Ascertain Per Cent or Proportion of L088.-When the total loss, total insurance, and amount of each policy are given:

Rule.-Divide total loss by total insurance, and the quotient will be the per cent or proportion of loss, then multiply particular insurance by per cent of loss, and the product will be particular loss; or, to use the Rules

of Proportion, the formula would be: as the entire insurance is to the entire loss, so is each policy to its proportion of the loss.

To Ascertain Per Cent or Proportion of Salvage.When total salvage, total insurance, and amount of each policy are given:

Rule.-Divide the total salvage by the total insurance, and the quotient will be the per cent of salvage. Multiply particular insurance by per cent of salvage, and the product will be particular salvage: or to use the Rules of Proportion, the formula would be: as the total insurance is to the total salvage, so is each policy to its proportion of salvage.

Rules for Ascertaining Amount of Loss.-There are several methods adopted by adjusters to ascertain the amount of loss on stocks of merchandise, the general principles involved in all are similar, although the means adopted to arrive at the result differ in some respects. Those in general use are given herewith:

FIRST METHOD. 1. From inventory or statement of stock on hand at given date, deduct items not stock; also, items not covered by the policy.

2. From remainder, deduct any charges included for expenses, freight and drayage, and the remainder will be net inventory or stock.

3. To net inventory or stock, add purchases from time the inventory was taken to date of fire, and the sum will be total net stock.

4. From total net stock deduct net sales, and the remainder will be the amount of stock on hand at the time of the fire.

5. From stock on hand, deduct cost value of merchandise saved in sound and damaged condition, and the remainder will be net merchandise loss.

6. From merchandise loss deduct value of commission goods.

7. From merchandise loss deduct discount on time purchases to find cash cost.

8. From cash cost deduct for depreciation and waste, to find present value.

9. To present value add freight and expense on net loss, to give gross values.

10. To gross values, add damage allowed on merchandise saved, and result will be the amount of the loss.

Note.-Exclude freight on purchases, sales and salvages, and when you have ascertained actual cost, at first hands of amount destroyed, add freight. This places assured, as nearly as possible, as he stood previous to the fire.

SECOND METHOD. The following may, perhaps, be regarded as a more concise method, and one easier understood:

First. From inventory, or statement of stock on hand at a given date, deduct items not stock; also, items not covered by the policy.

Second. From remainder, deduct all items included for freight and other expenses, and the remainder will be net inventory or stock.

Third. To net inventory, or stock, add net purchases from time the inventory was taken to date of fire, and the sum will be the total net stock.

From total net stock deduct the following:
1. Gross sales, less profit agreed upon.

2. Net value of merchandise saved in a sound or damaged condition.

3. Depreciation in values.
4. Discounts allowed for cash, on time purchases.
5. Value of commission goods.

Then to the remainder, add freight and expenses, as well as the damages allowed on goods saved, and the result will be the amount of the loss.

THIRD METHOD. First. Take amount of net inventory, or statement of stock on hand, at a given time.

Second. To this, add the amount of purchases from date of inventory to time of fire. The sum thus obtained will be the amount of stock.

Third. Deduct from the total amount of stock, cash and credit sales from date of inventory to time of fire,

less the estimated profits, and the result will be the stock on hand at time of fire. From this should be deducted the depreciation in value agreed upon for stock shopworn, out of date, etc.; also, value of merchandise used in or by assured's family or other parties, and not charged in account, and value of stock saved in good order, as per inventory taken since the fire, and the value of stock saved in a damaged condition, estimated by appraisers as sound; also, all commission goods, and the result thus obtained will be the net amount of the loss.

ADJUSTMENT FORMULAS, RETAIL STOCKS IN

COUNTRY STORES, ETC. Adjusters frequently are required to use their in. ventive faculties, in ascertaining the loss in country stores, when, after a fire, it is found that all books, papers, invoices, etc., have been destroyed. In such cases the following formula will be of assistance:

FIRST METHOD.

DEBITS. Capital invested........ Present indebtedness.... Ascertained gross profits..

CREDITS. Cash on band at time of fire.... $Investments other than merchan

dise ......... Expenses paid........ Bills and accounts receivable...

Total .............................. The balance between the accounts gives the amount of merchandise on hand at the time of the fire, from which the value of the goods saved should be deducted to ascertain the amount of the loss.

SECOND METHOD.

DEBITS.
Total purchases, per invoice...............
Produce, etc., per ledger accounts.........
Cash purchases agreed upon (no vouchers)

...................

CREDITS.
Total debits as above........
Less capital invested........... $-
Less present indebtedness......

The remainder represents
cash from sales applied to pur-
chases; to this add:
Investments
Expenses ..........
Cash on hand.................
Bills receivable.................
Book accounts receivable.......

The sum of these credits will represent the cash sales, which are reduced by the per cent of profit to cost basis in the usual manner, and the stock on hand at time of fire is readily ascertained.

COSTS

Cost of Production. Whether taken as a phase of industrial engineering or accounting, the determination of the cost of a manufactured product is of great importance. The time was when prices were set by guesswork or what seemed to be the price yielding a fair profit, but that time is now past. While the selling cost is dependent upon the demand and supply, the manufacturer, not being able to regulate or forecast what the probable demand will be, must know what the cost of his product is to him, that he may not be drawn into running his plant at a loss.

Outline of the Subject. In the simplest form of manufacture labor and material are the two prime factors of cost. When manufacture becomes more complicated, as in the case of a machine-shop putting out engines, boilers, etc., in order to obtain the factors making up the selling price, divisions and subdivisions must be made until the prime factors are reached. For such a plant as mentioned, the following would be an outline:

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