70 



The Florists^ Review 



July 6, 1922 





The florists whose cards appear on the pages carrjdng this head, are prepared to fill oidera 

 ""'*'""■ from other florists for local delivery on the usual basis. ^ 



who arc oi)i)oso(l to cliarging the busi- 

 ness with proprietor's salary and rent 

 of owned store also consistently op- 

 pose the •charfifing to expense of inter- 

 est on capital owned, but do advise the 

 charj^inff of interest on capital bor- 

 rowed to expense. It has l)econic more 

 and more coiiiinonly agreed, however, 

 among accountants and other business 

 men that it is advisable for each pro- 

 jirietor to charge his business with a 

 salary equal to what he could earn if 

 employed elsewliere, and also to charge 

 as expense rent on an o\v"ned place of 

 business etpial to the rental for which 

 the premises could be leased. There is 

 such diversity in the form of proprietor- 

 ship and ownership of premises that 

 figures for expense are worthless un- 

 less based on a uniform accounting sys- 

 tem providing for just such charges as 

 these. The reasoning in regard to the 

 desirability of including rent of owned 

 store and jiroprietor 's salary in expense 

 applies with equal force to the question 

 of interest on cajntal owned. No busi- 

 ness is truly profitable unless it yields 

 the proprietor not only a salary for his 

 time and rent for his store, if he owns 

 it, but also interest on his investment. 



Figuring Net Investment. 



Of course, there is frequently diffi- 

 culty in determining the amount of the 

 net investment. This- difficulty of de- 

 fining <'ai)ital has been met by the def- 

 inition which the Harvard bureau 

 adopted. Inasmuch as rent is to be 

 charged as a separate item, the value 

 of land and l)uildings used in the busi- 

 ness is not to be included in this princi- 

 pal sum. Good will, patents, trade- 

 marks and other intangible assets are 

 excluded, as are also outside invest- 

 ments in other businesses or in other 

 pro])erty. The items involved in the 

 calculation are: 



ASSET.S. 

 Casli oil liniid nnd in Imnk. 

 Notes rpiM'iviible. 

 Ai'coimts receivable. 

 Securities. 



Net inventory of inercliiindlse. 

 Net inventory of pqiiiiiment. 

 Net inventory of supplies. 

 I'lepiivments. 



LIABILITIES. 



Notes p.nynlile. 

 .■\((i)iints imyiible. 

 Accrneil items. 



The valuation of equipment is per- 

 hajis the most difficult point in the de- 

 termination of net investment. A con- 

 cern which is starting in business will 

 charge its capital account with all 

 eqiii]iment ])urchased at cost, including 

 transportation charges. At each inven- 

 tory period a proper amount should be 

 charged to exitense as depreciation and 

 credited to this capital account. The 

 balance of the account then represents 

 tlie net investment in equipment — the 

 original investment, plus additions, loss 

 the amount charged to expense as depre- 

 ciation. A going concern which has not 

 followed this method should make a 

 valuation of its equipment at the 

 amount which that equipment is actu- 

 ally worth and then depreciate that 

 amount properly at each succeeding in- 

 ventory jieriod. Thus tlie charging of 

 interest to exjiense encourages better 

 accounting for actual investment and 

 proper depreciation of equipment. The 

 amount of net investment must be de- 



^ /wuimh^lowerd 



Members 



of the 



P. T. D. 



Members 

 of the 



F. T. D. 



GUDE BROS.Ca 



rLX>RlSTS 



1 214 r St. n.v^ 



■WASHlNfiTdfsl.b,a 



. 



termined in the case of corporations en 

 tirely irrespective of the amount of cap- 

 ital stock authorized or issued. The cap- 

 ital stock may be much in excess of the 

 real investment or, on the other hand, 

 the business may be undercapitalized. 



PITTSBURGH, PA. 



The Market. 



It is gratifying to report that busi- 

 ness in the cut flower market has held 

 up well; in fact, each day has found a 

 steady demand. The supply of roses 

 has been exceptionally good, but the 

 demand far exceeds what is being re- 

 ceived in this market. Kach day finds 

 the wholesale houses practically cleaned 

 up on roses. The varieties being re- 

 ceived at the present time are White 

 Killarney, White Ophelia, Premier, Co- 

 lumbia, Ward, Butterfly and Richmond. 

 The demand, however, is the greatest 

 for white, and in many instances cus- 

 tomers have been disappointed. The 

 demand for valley has also far exceeded 

 the supply; in fact, valley is reported 

 as being scarce in both the eastern and 

 western markets. Orchids have also 

 been in demand, but the supply is quite 

 limited. Lilies aud gladioli have been 



TUCSON 



AU SOUTHERN 

 ■ ARIZONA, 

 NEW MEXICO and SONORA, MEXICO. 



Langers Seed & Floral Co., 



Taeson Seod^l'^onl Co., TuCSOH, AHzOna 



Phoenix. ARIZONA 



Donof no Floral Co. 



CHAS. E. MORTON. Mgr. 



Wire your orders to us for delivery in 

 Arizona and New Mexico. 



DOUGLAS,ARIZONA 



GATUFF FLOWER SHOP 



AND NEWS AGENCY 



Flowers for all parts of Arizona 



Navajo Rugs and Mexican Zarapes (blankets) 



TUCSON, ARIZ. Concuss street 

 BURNS' FLOWER SHOP 



