Net Worth And the Balance Sheet
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A rule observed by some manufac- turers is that patterns shall not be carried on the books at a greater value than an amount equal to 10 per cent, of the average yearly sales for the three years preceding the date of valuation.
Another rule calls for the writing down of patterns 50 per cent, the first year and 25 per cent, the second year, at which time an appraisement is made and the pattern val- uation adjusted on the books.
Another more general rule; calls for the establishment of an arbitra...ry lump sum at which patterns are carried on the books, all expense for patterns during the year in ex- 104 Net Worth and the Balance Sheet cess of that amount being charged off at the close of the year.
No general rule adopted by others may be safely followed by any manufacturer. The manager of each foundry and each factory of every kind in which patterns of one de- scription or another are used should study the problem for himself, not leaning too strongly in favor of the thought that some day little-used patterns may be valuable ; nor, on the other hand, leaning too much the other way in favor of reducing the value to a merely nominal sum.
What to read after Net Worth And the Balance Sheet?
You can find similar books in the "Read Also" column, or choose other free books by Stockwell, Herbert Grant, 1866- to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
A rule observed by some manufac- turers is that patterns shall not be carried on the books at a greater value than an amount equal to 10 per cent, of the average yearly sales for the three years preceding the date of valuation.
Another rule calls for the writing down of patterns 50 per cent, the first year and 25 per cent, the second year, at which time an appraisement is made and the pattern val- uation adjusted on the books.
Another more general rule; calls for the establishment of an arbitra...ry lump sum at which patterns are carried on the books, all expense for patterns during the year in ex- 104 Net Worth and the Balance Sheet cess of that amount being charged off at the close of the year.
No general rule adopted by others may be safely followed by any manufacturer. The manager of each foundry and each factory of every kind in which patterns of one de- scription or another are used should study the problem for himself, not leaning too strongly in favor of the thought that some day little-used patterns may be valuable ; nor, on the other hand, leaning too much the other way in favor of reducing the value to a merely nominal sum.
What to read after Net Worth And the Balance Sheet?
You can find similar books in the "Read Also" column, or choose other free books by Stockwell, Herbert Grant, 1866- to read onlineMoreLess
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