The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-01-10
FARMERS ADVISED
. T0KEEP INVENTORY !
!. OF their BUSINESS
o. N. Fuller, Assistant Econ
s
.omist at Agricultural Co..
|ege, Says It's Big Test
ONLY GAUGE Of PROFIT
Pencil Is Tool TiIIer Should Use
More, He Holds; Helps in
Upkeep Of Property

Farmers are the biggest business
men Of the state, as they have an
average capital investment OF $20, 900.
while the average town or city BUSH
ness concern has q smaller invest
ment, and that Is one reason why it
Is important that farmers should
take inventories and keep accurate
records Of their business, according to
o. M. Fuller, assistant farm econom-
list at the North Dakota Agricultural
college.
THE farmer needs more definite
Information on the business side of
agriculture, in order to plan hts farms
ing operations successfully" MIR. Full
Ter says. Can the farmer get this
Information? Not unless he is willing
to record few facts during the year
In regard to his farm business. The
pencil Is wonderful tool and the
farmer should realize the value Of It.
$1,000 In Bank No Test
"A farmer has $1,000 in the bank
December 81. Does that give us any
reason to believe that his farming
operations during the year were prof.
liable? The answer Is MOI Well,
suppose he owes a bank $1,000 at. the
end Of the year, would that indicate
that the farm was improbable?
Again the answer is MOI
MANY farmers in North Dakota
are answering these questions incor-
rectly today, because they do not have
al the facts regarding their farming
business. II these farmers would only
take an inventory OF their worldly pos
sessions at the beginning and end Of
the year they would be able to an
swer the above questions correctly.
The answers to other important farm
business questions could also be found
In q we'll prepared inventory.
How to Show Actual Profit
1.-THE inventory is one of the most
important phases Of record keeping.
It represents the logical first step for
10 farmer to take in putting his farm
on q business basis. An inventory is
an itemized list Of property on hand
at q given date, arranged according
Ito certain important classes Of prop
!! erty, together with q list of debts due
BY the business on the date the in
ventory is taken. The difference be-
tween the value Of property owned
and the debts due by q person q
business on a given date is called net
worth. BY subtracting the net worth,
at the beginning OF the year from the
net worth 1T the end of the year, the
net gain is the result.
IAN inventory shows as nothing
else does the importance Of taking
good care Of farm property. A horse
which Is worth 800 in one inventory
and SIS in the next brings home to q
farmer the loss that comes from care
less handling Of horses. A building
may depreciate 500 in one year
whereas, by timely application OF
work and paint costing $25, 1t would
depreciate only $50.
Evidence in Owning More
I'm case Of loss by fire an inventory
Is almost indispensable In order ia
secure complete payment for the loss
sustained, for without an inventory 1t
would be very difficult to make a
complete list of articles that are lost
THE inventory farmer may show
one farmer that, while he has less
money In the bank at the end Of the
year. the value of his property has
increased, so that he has really made
money. The inventory may show an
other farmer that. though he has
more money In the bank and fewer
debts than year ago, he has sold 81
much OF his stock and his other prop
erty has SO deprecated that he really
lost money during the year. This in