p. 24
Facsimile
Transcription
22
We will now present an imaginary balance sheet of
the working of the mines for one year, making our
estimates upon the present market value of coal, and
350 tons per day sold.
BALANCE SHEET.
EMPIRE COAL COMPANY OF CHICAGO.
CREDITS.
By sales at mines, say 100 tons per day for 300 days is
30,000 tons, average price $5,...150,000
By shipments, 250 tons per day to Chicago, 300 days is
75,000 tons, now selling at $8 on track....600,000
—
$750,000
DEBITS.
To cost of mining and delivering 100,000 tons on wagons
and Railroad cars at mines $2.80 per ton,...294,000
To freight to Chicago in company's own cars, on 75,000
tons at $2 per ton,....150,000
To salaries of Superintendent and assistant at mines,...8,000
" " " Agent and assistants in Chicago,....15,000
" rent of yard and cost of fixtures,...10,000
" incidental expenses,....3,000
" loss on screenings at Chicago,...25,000
" " by shrinkage and waste,....25,000
" interest on $100,000 bonds,....8,000
" taxes on company's property,....2,000
" Internal Revenue tax on profits,...10,000 550,000
—
Profit on this amount of business,....$200,000
These calculations are made upon the present pri-
ces. But supposing the prices go down, does not every
expense of producing, likewise go down? Perhaps not
in the same ratio, but very near it. Reduce these
profits one-half, and we have $100,000, which is thirty-
three per cent. on capital invested, or twenty per cent. on
Notes and Questions
Nobody has written a note for this page yet
Please sign in to write a note for this page