FARM RECORDS AND ACCOUNTS 433 



lost during the year. -It does not show on what enterprise 

 the gain or loss occurred. The hay and grain crops may 

 have returned a profit. The cows that ate it may have 

 failed to pay. The horses may have stood in the barn 

 so much as to result in a loss on them, or the family may 

 have been living beyond its means. Whether the year 

 as a whole has been profitable or otherwise, the final result 

 is nearly always made up of some gains and some losses. 



When a man has money, he nearly always feels that 

 '' times are good." Many times a farmer spends freely 

 because he has money, when an inventory would show him 

 that he ought to economize. The money may have come 

 because things on hand last year have been sold. The 

 inventory may show a loss. 



Just as frequently, men are discouraged because there is 

 no money, when an inventory would show that young 

 stock, feed, or other items had increased so much that one 

 ought to be very happy and optimistic. Cash on hand is 

 no indication as to whether the farm has paid or not. 



An inventory will also help one in estimating the profits 

 from different enterprises. It may show an undue depre- 

 ciation on horses or machinery. No one can take an 

 inventory every year without learning much more than he 

 formerly knew about his business. 



266. How and when to take an inventory. The usual 

 time for taking an inventory in any business is when the 

 stock of material on hand is lowest. On most farms, this 

 is in late winter or early spring. It should be taken early 

 enough so as not to interfere with spring work. The 

 first of February, March, or April is the best date in most 

 parts of the United States, but much depends on the kind 

 of farming followed. On a poultry farm, October 1 or 

 November 1 would be the logical time. The fundamental 

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