20      Four  Things  Every  Druggist  Should  Know.  {^'Aw^xm*' 
the  general  stock  and  used  for  a  department,  such  as  a  sponge  for 
the  cigar  counter,  or  a  few  ounces  of  some  flavoring  extract  for  the 
soda  fountain. 
The  purchases  of  any  department,  deducted  from  the  sales,  give 
you  the  gross  profits.  It  is  not  practicable  for  the  small  dealer, 
using  the  same  clerks  in  all  departments,  and  having  other  expenses 
common  to  the  general  business,  to  specialize  his  expense  account 
for  any  one  department.  His  only  method  is  to  apply  the  average 
expense  of  the  entire  business  to  the  department,  and  judge  the 
latter  by  the  relation  between  this  general  percentage  expense  and 
the  percentage  of  gross  profit  which  the  department  is  able  to  realize. 
Of  course,  as  in  the  business  at  large,  the  figures  must  be  corrected 
in  the  light  of  the  inventory  showing. 
ONE  OR  TWO  POINTS. 
Now  there  are  innumerable  other  things  one  might  say  with  profit 
in  discussing  these  various  records,  but  I  fear  that  I  have  already 
exhausted  your  patience  and  I  must  be  brief.  Just  a  few  words 
more  :  Don't  be  deceived  as  to  your  earnings  by  the  failure  to  mark 
off  annually  a  depreciation  in  the  inventoried  value  of  your  fixtures. 
Ten  per  cent,  for  a  soda  fountain  (which  should  also  be  charged  up 
against  the  soda  department  in  estimating  the  profits  of  the  latter), 
and  five  for  the  show  cases  and  shelving,  are  the  customary  figures. 
Book  accounts,  too,  should  be  subjected  to  the  same  process  of 
depreciation  if  you  would  know  exactly  where  you  stand. 
And  then,  in  charging  up  expenses,  be  careful  to  include  every- 
thing:  proprietor's  salary  ($1,200,  say),  clerks,  rent,  heat,  light, 
freight,  advertising,  insurance,  taxes,  license,  and  the  thousand  and 
one  little  items  that  should  be  considered.  An  interest  charge  is  not 
legitimate,  because  you  have  included  your  personal  salary  in  the 
expense  account,  and  what  you  realize  over  that  is  itself  the  interest- 
earnings  or  dividends  on  your  investment  of  capital.  At  the  end  of 
every  year  draw  up  an  itemized  list  of  expenditures ;  study  it  care- 
fully, compare  it  with  those  of  previous  years,  and  see  if  you  are 
not  spending  too  much  money  in  this  place  or  that. 
Now  in  conclusion  I  want  to  say  that  the  business  of  to-day  is 
conducted  in  accordance  with  scientific  principles.  It  is  not  without 
significance  that  the  World's  Work,  a  magazine  whose  main  purpose 
is  to  interpret  American  life  to  the  American  people,  has  a  depart- 
