RETAIL MARKETING OF MEATS 49 
are combined and the total is included, as the item interest in this 
study, as a part of operating expenses, though any who desire may 
transfer it to net profit. 
From actual figures and estimates of merchandise inventory, equip- 
ment, cash used in the business, accounts and notes receivable, and 
accounts and notes .payable, a fairly accurate net investment could be 
determined. Only the productive assets were included in the invest- 
ment figures; good will and investments or other assets not used in 
the business were excluded. A flat interest rate of 6 per cent for all 
localities for 1919 was adopted as sufficiently accurate. 
Depreciation of store equipment. — A rate of 10 per cent is used for 
the annual depreciation charge, the amount written off for deprecia- 
tion being based on cost orders so far as obtainable. (The rate used 
under delivery expense for auto delivery trucks and all motor ve- 
hicles is 20 per cent; for horses, harness, and wagons, 10 per cent.) 
Repairs to store equipment. — This account is charged with cost of 
repairing machines and all store equipment. It includes sharpening 
of cutting tools and purchase of small tools, such as trimming knives 
and saw blades, which last only one or two years. Repairs to deliv- 
ery equipment are included under Other Expense, and are sepa- 
rately considered under Other Delivery Expense. 
Insurance. — To this account is charged insurance premiums of all 
kinds, except on buildings and delivery equipment. Insurance on 
delivery equipment such as auto trucks is included under Other 
Expense and is separately considered under Other Delivery Expense, 
while insurance on owned buildings is fully covered in the estimated 
rent. 
Taxes. — This account includes all payments of taxes on stock, 
store equipment, all personal property used in the business, except- 
ing taxes on delivery equipment, which are included under Other 
Expense and are separately considered under Other Delivery Ex- 
pense. Licenses, occupation, and mercantile and Federal taxes 
(except income and excess-profit taxes) are included. Taxes on 
owned buildings or real estate used in the business are fully covered 
in the estimated rent. Income and excess-profit taxes are not in- 
cluded, since they are considered a part of the net profit. 
Losses from bad debts. — This account is charged with outstanding 
accounts due from trade debtors which were reported as uncollectible. 
Other expense. — Included in this account are all expenses not 
otherwise charged. All delivery expense other than wages is in- 
cluded and constitutes the principal cause of the difference in this 
account between carry and delivery stores. Other items of frequent 
occurrence are laundry, sales pads, office supplies, sawdust, rubbish 
disposal, dues and subscriptions, janitor service, car fares, and legal 
and accounting fees. 
Delivery expense. — To this account are charged the various items 
concerned with the maintenance of delivery service, as wages of 
labor employed; hay, feed, and horse-shoeing; automobile licenses 
and supplies; repairs, taxes, insurance, and depreciation of delivery 
equipment; rent of stable and garage, whether owned or leased; and 
charges for express and contract delivery service. Delivery Ex- 
pense is grouped under two principal divisions, Delivery Wages and 
Other Delivery Expense. In the analysis of the data, delivery wages 
