The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-12-12

An audit company exhibit shows
that the average cost per barrel
manufactured was $765 and consider.
ing the cost at inventory at the be-
ginning and inventory at the end, it
shows that the average cost of -four
sold was $S.04 H." Continuing it
says:
The exhibit ALSO shows that the
average sale price was $7.2S IL, or an
average loss on each barrel of -four
CT $.76, and while our statement
shows that this loss is apparently
SIS barrel, which yields loss OH
flour sold of $5,961.15, yet as mat.
ter pf direct application, the loss is
considerably more per barrel
The inventory values the plant and
equipment at $29,01373 and furniture
and fixtures at $1,027.27.
,....,.-. Long. on Options
The report states that on October
Is there are outstanding options OF
wheat sold lon the Minneapolis mar
ket which on a basis Of the close on
that date showed a profit Of $982.50.
It continues, however, to point out
that on the basis Of the wheat -four
On hand and flour on consignment not
sold the mill management had not
''hedged" sufficiently to cover possible
losses, and says that ''the total
amount that the mill was long on Oc-
tober 18th, was $4,000 bushels, against
which have been sold 10000"
The accounts receivable received
much attention from the auditing firm.
The storage account OF $24,606.12
from which was deducted $4,000 for
possible losses, showed much -four
had been sold on open consignment
accounts (to be paid for as sold) to
stores Of the Consumers United
Stores company, a bankrupt institu'
ton. The storage account ledger
balance Oct. Is, 1921, IS shown as fol-
lows:
Flour reported sold by Consumer
U. S. Co. but unpaid, $13,352.S7; Cap
itol Commercial Co. of Bismarck,
goods sold but unpaid, $3,130.l4;
Peoples Supply Company, Grand
Forks, "defunct,' sold but unpaid,
$1,696.5S, total goods sold but unpaid,
$18,36S1O; open consignment ac-
counts, Cooperstown store, $11.70;
Garrison store, s76.3S; Darlington
store, $2556S; Devils Lake store,
$63S.5O; Larimore store, $377.55; Co.
lumbus store, $132.S0; Courtenay
store, $148.0S; Powers Lake store,
s54.56; Turtle Lake store, $161.56;
Bisbee store, $61O66; Fessenden
store, credit of $16S.O3; Hurdsfield
store, $500; Crosby store, $S2.2O;
elevator accounts, Killdeer elevator,
$27S.97; Leith elevator, $1,493.65; La
kota elevator, s92364; Towner eleva-
tor, $1,123.14 Dover elevator, $14S.26
(sold out), total S24,606.12.
In discussing this schedule the audit
company says: Under schedule F.
will be found a detailed statement of
this account (storage account) the
amount of which is $24,6O6.12. On the
balance sheet we have deducted $780,
600 as reserve for possible loss, and
carried onto the assets only $4,6O612.
A little study of schedule F. will re-
fleet quite serious situation. On
our audit report of April 9th, 1921,
we showed an amount due for goods
sold but unpaid, s1s,36S.10. In the past
five and one-half months the only
payment recorded at Drake against
this asset is for $1SS51, which
amount is 10 per cent dividend from
the defunct Peoples Supply Company
Of Grand Forks, N. d.
A summary of the accounts receiv-
able lists: accounts for which drafts
have been made through banks, $S,-
G7S.01; open accounts less than 80
days old s3.S5S50: open accounts 30
to 60 days old, $9636; open accounts
2 to months old. $50 o.; more than
months old, $2.26449, a total of
S14.9S0.44 from which is deducted
credits of $33.71.
Recommendation Made.
A loss of $S23SS is listed on sacks.
listed as estimated shortage" The
report lists 5.414 barrels used and
| $500 feed sacks, and uses the ledger
balance and inventory of Oct. Is to
determine the shortage
A statement of production from April
| q to Oct Is shows the following: