## To Ascertain Stock

When the amount of gross sales, net purchases, and rate per cent of profit are given, then to ascertain the amount of stock on hand:

### Rule

Divide the amount of sales by 1 (one dollar), plus the rate per cent of profit, and the quotient will be the net sales. Now, subtract the amount of net sales from the net purchases, and the remainder will be net stock.

## To Ascertain Present Value

When the gross amount of sales and per cent of profit are given, then to ascertain net sales or present value:

### Rule

Divide the value stated by 1 (one dollar), plus the rate per cent of profit, and the quotient will be present value or the net amount of sales.

### Note

You can never arrive at the correct present value or the amount of net sales by multiplying the gross sales by the rate per cent of profit, and deducting this product from gross sales.

## To Ascertain Sales

When net purchases, rate per cent of gross profit, and net inventory are given, to ascertain gross sales:

### Rule

From purchases deduct inventory, the difference will be net sales. Multiply net sales by the rate per cent of profit, the product will be profit in dollars and cents, which added to net sales, will give the gross sales.

## To Ascertain Per Cent Of Profit Or Loss

Given, the gain or loss, to find the per cent:

### Rule

Take the difference between the net cost and the amount received from the sales, and divide by the gross cost, and the quotient will denote per cent of profit or loss. This is the old rule of dividing the gain or loss by the number on which the per cent is reckoned to ascertain the per cent of profit or loss.

## To Ascertain Profit Or Loss In Dollars And Cents

Given the cost and per cent of profit or loss:

### Rule

Multiply cost by per cent of profit or loss, and the product will be profit or loss. Also find difference between net cost and amount received from sale of merchandise.

### To Ascertain Per Cent Of Profit

When net sales and gross profit are given:

### Rule

Divide the amount of profit by the amount of sales, and the quotient will be per cent of profit. (This is the old rule of dividing the gain or loss by the number on which per cent is received to find the per cent of gain or loss.)

## To Ascertain Profit In Dollars And Cents

When the amount of net sales and per cent of profit are given:

### Rule

Multiply net sales by per cent of profit, and the product will be profit. Also subtract net sales from gross sales.

### To Ascertain Per Cent Of Profit

When net purchases, gross sales, and inventory are given, to ascertain per cent of profit:

### Rule

Deduct purchases from inventory, and the difference will be net sales. Subtract net sales from gross sales, and the remainder will be gross profit. Divide gross profit by net sales, and the quotient will be rate per cent of profit.

## To Ascertain Per Cent Or Proportion Of Loss

When the total loss, total insurance, and amount of each policy are given:

### Rule

Divide total loss by total insurance, and the- quotient will be the per cent or proportion of loss, then multiply particular insurance by per cent of loss, and the product will be particular loss; or, to use the Rules of Proportion, the formula would be: as the entire insurance is to the entire loss, so is each policy to its proportion of the loss.

## To Ascertain Per Cent Or Proportion Of Salvage

When total salvage, total insurance, and amount of each policy are given:

### Rule

Divide the total salvage by the total insurance, and the quotient will be the per cent of salvage. Multiply particular insurance by per cent of salvage, and the product will be particular salvage: or to use the Rules of Proportion, the formula would be: as the total insurance is to the total salvage, so is each policy to its proportion of salvage.

## Rules For Ascertaining Amount Of Loss

There are several methods adopted by adjusters to ascertain the amount of loss on stocks of merchandise, the general principles involved in all are similar, although the means adopted to arrive at the result differ in some respects. Those in general use are given herewith:

### First Method

1. From inventory or statement of stock on hand at given date, deduct items not stock; also, items not covered by the policy.

2. From remainder, deduct any charges included for expenses, freight and drayage, and the remainder will be net inventory or stock.

3. To net inventory or stock, add purchases from time the inventory was taken to date of fire, and the sum will be total net stock.

4. From total net stock deduct net sales, and the remainder will be the amount of stock on hand at the time of the fire.

5. From stock on hand, deduct cost value of merchandise saved in sound and damaged condition, and the remainder will be net merchandise loss.

6. From merchandise loss deduct value of commission goods.

7. From merchandise loss deduct discount on time purchases to find cash cost.

8. From cash cost deduct for depreciation and waste, to find present value.

9. To present value add freight and expense on net loss, to give gross values.

10. To gross values, add damage allowed on merchandise saved, and result will be the amount of the loss.

### Note

Exclude freight on purchases, sales and salvages, and when you have ascertained actual cost, at first hands of amount destroyed, add freight. This places assured, as nearly as possible, as he stood previous to the fire.

### Second Method

The following may, perhaps, be regarded as a more concise method, and one easier understood:

First. From inventory, or statement of stock on hand at a given date, deduct items not stock; also, items not covered by the policy.

Second. From remainder, deduct all items included for freight and other expenses, and the remainder will be net inventory or stock.

Third. To net inventory, or stock, add net purchases from time the inventory was taken to date of fire, and the sum will be the total net stock.

From total net stock deduct the following:

1. Gross sales, less profit agreed upon.

2. Net value of merchandise saved in a sound or damaged condition.

3. Depreciation in values.

4. Discounts allowed for cash, on time purchases.

5. Value of commission goods.

Then to the remainder, add freight and expenses, as well as the damages allowed on goods saved, and the result will be the amount of the loss.

### Third Method

First. Take amount of net inventory, or statement of stock on hand, at a given time.

Second. To this, add the amount of purchases from date of inventory to time of fire. The sum thus obtained will be the amount of stock.

Third. Deduct from the total amount of stock, cash and credit sales from date of inventory to time of fire, less the estimated profits, and the result will be the stock on hand at time of fire. From this should be deducted the depreciation in value agreed upon for stock shopworn, out of date, etc.; also, value of merchandise used in or by assured's family or other parties, and not charged in account, and value of stock saved in good order, as per inventory taken since the fire, and the value of stock saved in a damaged condition, estimated by appraisers as sound; also, all commission goods, and the result thus obtained will be the net amount of the loss.