Part 43 (1/2)

Seventh Oolumn--”Cost of Goods Sold, Less Cost of Goods Returned.”

The total of the sales extended at cost prices for each day, minus the amount showing in the fourth column, should be entered in this column.

It should be totaled every week and every month.

Eighth Column--”Gross Profits.”

To arrive at the figures to be entered in this column deduct the amount in the seventh column from the amount in the sixth column.

Total this column every week and every month.

Ninth Column--”Per Cent to Sales.”

This percentage should be figured every day, and every week and every month, and is arrived at by dividing the figures in the eighth column by the figures in the sixth column. It will pay you to watch this column closely. You will be astonished at the way it varies from day to day, week to week, and month to month. If you watch it closely enough, you will soon learn a great deal more about your business than you ever knew before. You do not need to total this column.

Tenth Column--”Accounts Receivable.”

On the day the Daily Exhibit is first started, the figures for this column must be taken from whatever records you have kept in the past.

Do not total this column.

Eleventh Column--”Collections.”

Every day you collect any money from those customers who run charge accounts with you, enter the amount collected in this column. Total it every week and every month.

Twelfth Column--”Cash Sales.”

Every day enter the amount of cash sales in this column, and total it every week and every month.

Thirteenth Column--”Charge Sales.”

The amount of daily sales made to those customers who do not pay cash but run a charge account should be entered in this column. Every week and every month this column should be totaled.

General Calculations.

To arrive at the amount of ”Merchandise on Hand” after the first day, which is, as has been previously explained, an actual physical inventory, add the amounts showing in the first and second columns, and deduct from this total the sum of the fifth and seventh columns.

Enter this result in the first column for the next succeeding day.

Continue as above throughout the entire month.

After the first day the figures in ”Accounts Receivable” column are obtained by adding together the amounts showing in the tenth and thirteenth column and deducting from this total the amount in the eleventh column. This balance will be entered in the tenth column for the next day, the same procedure being followed for each day thereafter.

”Merchandise on Hand” after the close of business on the last day of the month should be entered in the first column on the line marked ”Month Total.” This same amount will be carried forward to the first column of next month's sheet and entered on the line of the particular day of the week on which the first of the month falls.

Following the ”Month Total” are the ”Year to Date” and ”Last Year to Date.” These figures are important for purposes of comparison. Arrive at total for ”Year to Date” by adding the total for the present month to the total for ”Year to Date” found on the previous month's sheet.

The figures for ”Last Year to Date” are taken directly from the sheet kept for the same month last year. It is, of course, evident that this cannot be done until one year's records have been completed.

Expenses and Profits.

Under the heading ”Summary” at the bottom of the sheet, provision has been made for finding out how much net profit YOU have made for the month.

On the line marked ”Gross Profits” enter the ”Month Total” figures in the eighth column. Below this enter all the various items of expense as follows:

(1) Advertising: By advertising is meant such copy, signs, etc., which may be prepared and used for the purpose of keeping the public informed as to your ability to serve them--in other words, any s.p.a.ce which is used for general publicity purposes, such as for instance, your card in the cla.s.sified telephone directory, or blotters, folders, dodgers which you may have printed up and distributed.