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E88[NTIAL FACTS ON BOW.
10 FIX YOUR INCOME BLANK
This Tax Is Often "A Blessing in Dis
guise" Forcing, as it Does, the
Business Man to Do H1is Biuying,
Selling and Accounting More
Just how a merchant or shopkeeper,
who has no real bookkeeping meth
ods, should p1 oceed in figuring his
annual profit or loss for the purposesI
of the income :ax is explained in a
statement isuc I by the Bureau of In
The experience of the bureau is that
most shopkeepers have at. hand, or can
construct with reasonable a-euracy,
the data necessary for properly come -
puting the net income for each year.
The data which he will need is con
tamed in the gross sales. the purchas
es e fthe year, the inventories at he
ginning and end of the year, and the c
selling expenses. I.
The gross sales over the counter are
known to every progressive :-tore or
shopkeeper. In iany cases he has his
cash-register memoranda. Even if he
has no register, he usually has some
other records of his intake.
Aside from cash sales, most small
stores have runninct accounts with cus
tomers. I nthe case of a brand new
business it is important that accounts
receivable for goods or services fur
nished durin the taxable year be ad
(led to the cash receipts, the result to
be take nas the gross sales of the
In the case of a long-etsablished
business in which the balances due
from customers will average about the i
same a mound: each year, the storekeep
er has the privilege of figuring his
net. income on a "cash basis." That 1
is, by ignoring the balances lue him
from eustomers and including in his ("
cash receipts the tota lof intake re
gardless of when his goods were sold, p
he will arrive, by proceeding along the W
steps prescribed by the bureau, at an h
acceptable computation of the net re
suit of the year's transactions. a
In any case where both the cash in
take and the accounts receivable creat
ed during the year are taken into con
sidleration as the gross sales, the store
keeper should guard against duplica
tion of the same income byonitting
the payments received on back ac- -
counts that were taken up in prior ?t
years as accrued income.
There are, therefore, two methods
of arriving at gross sales for the year.
On the one hand is the "cash basis,"
which is more practical for a long
established store, and on the other
hand is the "accrual basis," which is
more accurate from an accounting
standpoint as -lmwinog the correct
earnings of the store during the year.
The purchases of goIs and sup
plies during thy' vear are h11t iinable
from the in ward invoices, which most
shopkeepers retain for their own use
in fixing retail prices. Invoices of ="
W. C DA ,.
roods not received at the end of the
ear should be included, and in tl'.ese
-ases such goods must be included in
;he inventory for the end of the year;
or, although in transit, the title to the
oods has passed to the shopkeeper
intl they are considered as on hand.
goods or local products received in ex
hange for other goods should not be
nelu(led; neither should cash pur
'hases be considered if the intake for
he year is figured on the basis of the
laily gain shown in the cash drawer.
The construction of inventories of
oods on hand unsold at the beginning
mI at the end of the year is no- a
liflicult matter in small merchatndis
ng. The stock on hand is generally
veIll known to the owner, who, if he
s wide-awake, keeps an eagle eye on
iis shelves and storehouse. The pric
ng of this stock is the thing that he
oust he most careful about, particular
y in these years of fluctuating costs.
'lie pricing should he by one of two
nethods: (1) Cost in each item or
2) cost or market whichever is low
r" on each item. In either case he -
annot value the stock at any price
igher than cost and by the second e
net hod the shopkeeper may use mar
et price if it is lower than his actual t
mrehase price, on any or all items. t
In pricing inventories there is an
ther important rule of the Govern- f
nent to be observed; that is where
.ools are so intermingled that they
an not he identified with specific in
oices they am e deemed to be the most
ecently purchased. and the latest in
Dice prices on those particular items 11
hould be used. 1'
An to selling expenses, these are c
asily figured, for a shopkeeper keeps
close watch on his t ill and knows
'hat it has cost to pay his help, to s
ight and heat his store, to pay his 1
('mnt, if any, and to maintain his de- E
ivery service. Then there is the tele
hone, telegraph, postage, expressage,
reight, and repairs. He is also allow
d to include interest paid on borrow
d( molney, taxes on his business pro
crty, and a reasonable allowance for 1
;ear and tear on his fixtures, wages, 1
orses, delivery auto, or any machin- t
ry or other equipcent which he owns
nd uses in the business.
With the above data at hand, any
Baler may figure the net income of
he business. The procedure is as fol
An the inventory for the beginning h
WE CAN SAVE
BY MAKING YOUR
We are doing it for ti'
not for you? We believe
emeso Ra~ .\ pl'sai
ripfcm et ate
Death only a matter of short time.
Don't wait until pains and aches
become incurable diseases. Avoid
painful consequences by taking
The wotid''s snndnrd rem"2 !r kidney,
liver, bladcdor nrd aric sid outi --ho
Nntion:al Remed. .y 1 '1Huiolr.d wrmee 1696.
Guaranteei. Thr1:ee s.zer, all drug~giito.
Look for tho name C.c Medll en ovvty box
G., accept no imitation
f the year to the purchases for the
ear; from this sum subtract the in
entory for the end of the year, and
he balance is the cost of goods sold.
'aking this cost from the gross sales
or the year he reaches a figure which
his gross opera'ing for the year.
'roma this gross profit he is allowed to
educt his selling expenses. The result
net profit, to which he should add
ny interest or other busines sincome
ot included in his gross sales, and the
csult will be the amount which he
,ill consider as his business net in
By pursuing the above method the
hopkeeper eliminates cons Weration of
is own salary or withdrawals from
fe business. If he made withdrawals
rom the business, whether daily,
'eckly, monthly, annually, or irrcgu
trly, in the form of cash or in goods
)r his home consumption, this amount
imst either be added back into the net
icome as computed by the method ex
lained above or he should consider it
s a salary withdrawn, and therefore
ixable income. The point to be
orne in mind is that Mr. Storekeeper
taxable on his entire net income,
hether withdrawn or not.
A merchant may have withdrawn a
msiderable amount of money from
is business and yet have actually suf
Lousands of others-why
a trial will convince you.
ers and Dyers,
~ That 'Ev
Men Who Appreciate
In every great tire fa(
chief question is: "How
we give for the money?"
product depends on tl
'Every man who has b
quainted with Brunswi
knows that Brunswick
are again evident. This La
cern-noted as a leader
line it entered since 1845 -
more proved that its polic
'A perfect tire is simply
of knowledge and stant
skill. No secrets nor pa
vent making an ideal tir
But standards come fir;
tire making there is vast
skimping, for subtle econ
hidden shortcomings. Ma
out the highest standa
build high-grade tires.
The Brunswick organi
tire makers includes a bril
of technical experts. N<
Cord Tires with "i
Fabric Tires in "Pla
W0 J. Young
f an in fisyea'! litran e det f
t ioni h is sh lv a h i b jin <h-tlted
m; anmeih: t :u- buib 'ling fp and I
ttn ig h i u ie ,r withdraw
i ;' I I fti :: ! i ih u t hi
hw n aI ui n th a i n
\ ih t the f ar ini! ai' Iuire t i c
or w t her ' he I r ' i -n iy r wi
he b - 3e an o .oe in its n
i it ,3 a i li t'f'tiiv hiI t r
er Came to M
Superlative Values Prefer
:tory, the among them h
much can 20 years in hand
And the Each is a m
ie policy And the new it
the attention of
,come ac- tors receive sin
ck Tires Every proved
standards adopted unanim<
in every The Brunswic
-has once nation of ackno'
y is right. plus Brunswick
ards and The result is a
tents pre- of which you ha
fore. The kind
et. For in gladly join in we
room for Yet Brunswi<
Dmies, for than like-type ti
kers with- Try ONE Bru
cds don't ise a surprise. I
that you will
zation of wicks.
liant staff Then good tir
At a man meaning to you.
ta Headquarters: 38 Luckie St..
i An Unlimited Mile
)riving" and "Swastika" Skid-r
n," "Ribbed" and "BBC" Skid
Motor Co., ia
osi 1000.) andt 109G are fur n ished -
r The Brunswick
is spent less than
aster of his craft.
leas they bring to
:k Tire is a combi
standards of manu
ve never known be
of a tire you will
ks cost no more
nswicl. We prom
knd we feel certain
vant ALL Bruns
es wiU hav a new
~anning, S. C.
re.:tinic cono a l toay. The v;
1 'l1 :I Iii ilil' Ila (e 10 Ie etU'
for 2 Years.