THE YOUNG FARMER 



other commercial enterprises. However, 

 there is no business in which more foolish 

 estimates are made as to the probable profits, 

 except, perhaps, in mining. 



The purpose of this chapter is not to give 

 advice as to possible or probable profits, but 

 rather to point out the general character of 

 the data required for any individual prob- 

 lem, where the data may be obtained and 

 how it may be applied. 



There are two forms or methods of stat- 

 ing the financial gain that has been obtained 

 from farming or other business ventures 

 during a year or other specific period. The 

 first may be called the interest on the invest- 

 ment method, and the second the labor in- 

 come method. 



With the interest on the investment 

 method, all expenses may be subtracted 

 from all the sales. From the cash balance 

 thus obtained the increase or decrease in 

 inventory may be added or subtracted. This 

 balance may then be divided by the capital 

 invested, to determine the rate of interest 

 received. 



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