BUSINESS ASPECTS OF FARMING 



445 



TABLE II. This table illustrates the manner of comparing inventories 

 from year to year. 



The difference between the inventory values for the two years 

 represents the gross gain or loss for the year either because of 

 the increase or decrease in quantity, or because of the rise or 

 fall in price. Such an inventory is of no value unless it gives 

 the farmer a more definite idea of his business than he can form 

 from his general knowledge of the situation. Therefore, in 

 making the inventory every care should be taken to place a 

 reasonable valuation on the property. By estimating the prop- 

 erty too high, the inventory will mislead the farmer, and 

 by placing the value too low, injustice will be done the busi- 

 ness. It is always safer to fix an average value rather than to 

 use the fluctuating value at the date on which the inventory 

 is made. 



