The Florists^ Review 



Mabch 20, 1920 



Th« florlato whoa* osrda appMtf on tbo paces oarrylnc tbia bMkU 

 —- *— tromotb«r florists for local (lellTenr 0Btli9iwiurii 



YOUR ORDERS 



for Easter or any 

 other occasion always 

 will receive Prompt 

 and Careful attention 



2134 Michigan 

 Avenue 



CHICAGO 



STOCK 



FACILITIES 



SERVICE 



WALTHAM, MASS. 1st CLASS 



Member F. T. D. M. F- RU ANE 121 Moody St 



BROOKLINE 



and Chestnut Hill, Mass. 



F. E. PALMER, Inc. 



220Washington St. 

 BROOKLINE, MASS. 



FOR THIRTY YEARS THE LEADING FLORIST IN THIS EXCLUSIVE COMMUNITY 



expression in brief formulas, using the 

 following symbols: 



IB — inventory at beginning of year. 



IE — inventory at end of year. 



SP — stock purchased during year. 



SO — stock offered for sale during 

 year, in cost figures. 



SS — stock sold during year, in cost 

 figures. 



GS — gross sales for the year, 



E — expenses for the year. 



NP — net profit for the year. 



Then the method of calculation al- 

 ready described may be expressed in 

 three simple equations, as follows: 



IB+SP=SO SO— IE=SS. 



GS— (SS+E)=NP, 



Or these may be simplified into one: 



GS+IE— IB— SP— E=NP. 



Consequently, w^hen at the end of the 

 vear the retailer has before him the five 



essential facts, namely, the totals of the 

 two inventories, the amount of stock 

 purchased, the expenses for the year and 

 the gross sales, the net profits can be 

 found at once by substracting the sum 

 of the totals for the first inventory, the 

 stock purchased and the expenses from 

 the sum of the totals for the gross sales 

 and the second inventory. 



In applying this method to his own 

 business, the individual retailer may 

 want to subdivide the fiscal period and 

 not wait till the end of the year to know 

 where ho stands. He may, also, prefer 

 to use a system of stock-keeping records 

 and do away with some of the inven- 

 tories. 



One point that will be of assistance in 

 keeping the necessary records will be 

 the exclusive use of a check book. If all 

 the money that is received is deposited 



in the bank, instead of being used di- 

 rectly to pay expenses, and if every pay- 

 ment is made by check, with a record on 

 the stub of the important facts about 

 each payment, the keeping of the nec- 

 essary records of income and expenses 

 will be made much easier. 



Where It Leads. 



While the simple method of calcula- 

 tion which has been outlined will be 

 enough to satisfy the income tax col- 

 lector, the retailer is not likely to atop 

 there. His natural curiosity about his 

 own business will be aroused. He will 

 analyze the records for particular 

 seasons and particular lines of trade, 

 even for particular flowers and plants. 

 He will compare his cash business and 

 his charge business, his local trade and 

 his telegraph trade. He will find out 



