MICHIGAN ACADEMY OF SCIENCE. 29 



2set opera ti 11 j^' revenue .f 82, 075 (L 



Interest ou bonds 18,040 00 



Net income or profit |G4,G20 72 



Note:^ — No allowance lias been made for depreciation. 



The profits having been determined, the next question is where 

 are they. The profit together with the |2,500, which was borrowed, 

 making a total of |67,12G.72, have been disposed of as follows: 



Given to the city in the shape of free water $7,950 90 



Ketained in cash 2,560 00 



Bonds paid — purchase of a greater equity in the busi- 

 ness 25,700 00 



Extensions 23,259 79 



Improvements 7,650 03 



Total 167,126 72 



In order to get information of real value, the statement as fur- 

 nished has to be completely made over and the result of such re- 

 casting is a statement containing many appoximations and owing 

 to the lack of proper classification, it is often impossible to get 

 as much information as we have here obtained. 



It would seem to the layman that to get out all these statements 

 and details Avould involve considerable labor and cost. Even if it 

 did, the cost would be amply repaid by the results attained as is 

 shown by the fact that precisely, where competition is keenest, are 

 to be found the best accounting systems. Much information conies 

 as a by-product. You have to know the total tax levy at the be- 

 ginning of the year for only by so doing can you fix the tax rate. 

 You must know the amount collected by the treasurer in order 

 to know for how much cash he is responsible. It is little trouble 

 then to find out the total taxes outstanding. You almost have 

 to get this figure to be sure that you have charged the treasurer 

 correctly for by adding the paid and unpaid taxes together and 

 comparing them with the total at the beginning, you get an absolute 

 check on the arithmetical accuracy of your work. The same is true 

 of other items. Wherever you must keep a great deal of detail, 

 vou need one account for mains and accounts. 



University of Michigan, Ann Arbor. 



