OFFICE ORGANIZATION AND MANAGEMENT 591 



4. Financial records for the operation of business activities. 



Profit and loss statement. Records required for the operation of a busi- 

 ness enterprise, as any revenue-producing activity actually is, are varied 

 both in quantity and nature in accordance with the amount and variety of 

 business done. First and foremost in the operation of any business enter- 

 prise is the statement of revenue and expense, or profit and loss. In munic- 

 ipal businesses the balance sheet is of less importance, usually because the 

 equipment and capital investment in the business itself is a part of the 

 general park assets. In most instances, the amount of business done by 

 any park department justifies no more than a fairly well detailed statement 

 of revenue and expense. Even in some of the larger systems, a further 

 detail of this statement is all that is required. 



An example is given of such a statement for a public golf links, whose 

 rather elaborate building is used for social functions, especially in the winter 

 time. Succeeding pages of the statement detail and support the various 

 figures shown on the page of the statement submitted on the following page. 



Comparison of sales with value of merchandise dispensed. There is always 

 a possibility of a loss of merchandise either because of natural shrinkage, 

 breakage, spoilage or because of the fact that clerks give merchandise away 

 without taking in money for it, or use the merchandise themselves. In 

 order to reduce such leaks to practically nothing, it is quite essential that 

 the sales be compared with the retail value of the merchandise dispensed. 



The idea is comparatively simple. If the check-up is to be made once 

 a month, an inventory of all merchandise is taken just before the beginning 

 of business on the first day of the month. A record of all deliveries made 

 during the month is kept and these deliveries are added to the first of the 

 month inventory. After the close of business on the last day of the month 

 and before the beginning of business on the first day of the succeeding 

 month, another inventory is taken of all merchandise on hand. The dif- 

 ference between this inventory and the sum of the monthly deliveries and 

 the first of the month inventory, gives the amount of merchandise which 

 has been dispensed; the retail value of it should check exactly with the 

 monthly sales. 



Theoretically this is simple, but practically it is not quite so simple. 

 With careful study and analysis, however, it can be worked out with com- 

 plete success. Such definitely priced articles as cigars, bar candy, golf 

 balls, bottled drinks present no problem, but such items as ice cream cones, 

 sodas, mixed drinks and lunches require an analysis to determine how much 

 of the bulk merchandise is used in the make-up of the items dispensed. A 

 knowledge is required of how many slices of bread are in a loaf, how many 

 scoops of ice cream in a gallon, in order to determine the retail value of a 



