The cash on hand should always be a

To the Manager

......................................BANK. .............................................19

As a basis for credit with the above bank I/ we hereunder submit for your information the following Statement which, without any reservation whatever, shows clearly and fully my/our financial position, made on a fair and conservative valuation from an actual inventory taken on ...................191... . and includes all my / our direct and indirect liabilities.

DIRECT LIABILITIES ASSETS

Due to Bank

Cash on hand $ In Bank $

Bills Payable or merchandise

Stock on hand, at cost, or under(Insurance $ _ )

Accts.

Bills Receivable for Goods Sold

All other Direct Liabilities (exclusive of Mortgages)

Accts. " " " "

Other Bills & Accts. Receivable

Other Reliable Quick Assets

Current Liabilities

Total Quick Assets

Mortgages on Real Estate particulars of which see below

Real Estate,particulars of which see below,actual value

Surplus forward $

Gain for year $

Figure 38. (Front: - Upper Half)

PARTICULARS OF REAL ESTATE

Description

Issued for

Assessed Value

Actual Value

Mortgage or other Liability

Equity in

Indirect Liabilities

Customers' paper discounted .............$..........

On other paper indorsed or guaranteed.....$..........

Other liabilities........................$-----------------; MERCHANDISE

Finished..............................$..........

Unfinished ............................$..........

Raw .................................$-----------------Valued at cost or market? ..........................

Annual amount of sales or turnover........$..........

Regular time of taking inventory and balancing books ?........

Inventory taken by whom ? ...............................

Accounts And Bills Receivable

Are all due from customers ? ..............................

Are any due from members of firm, relatives or employees ?......

Are there any which you will probably not be able to collect? ....

Accounts And Bills Payable

Are all due for goods purchased ? ..........................

Are any due to members of firm, relatives, employees, or any other than trade creditors ?

Usual Terms of Purchase ................................

Building, Machinery And Fixtures

Are buildings well-appointed and maintained ? ...............

Is machinery equipment modern ? ..........................

Is anything without value, or not now in use included in this item?

Provision for depreciation, $...............................

LIFE INSURANCE $................

$................

$................

In Whose Favor

Amount of marriage contract, if any. $................

In favor of

Your obedient servant,

N.B. - If a Firm, each partner to sign under the firm signature.

Figure 38. (Front - Lower HalF)

PROFIT AND LOSS For Year Ending

Expenses, including interest, taxes, insurance, repairs, maintenance, etc.

Gross Profit on sales for last fiscal year

Gross Profit from other sources

Written off for depreciation

" " a/c bad debts

Withdrawals by self or partners $

" for Salaries $

" for other purposes $

Net Profit.

Net Loss

$

$

IF A PARTNERSHIP: FIRM NAME_____________________________________________

GENERAL PARTNERS

SPECIAL PARTNERS

Name

Amount Contributed

Outside Net Worth

Name

Amount Contributed

Until

Is Partnership Registered?

IF A LIMITED COMPANY: CORPORATE NAME___________________________________________

Date______._________________________________________________By_____________________________________

(State Officer's Title) Office Address .___________________________________________ Nature of Business_______________________________________

Location of Plants and Branch Offices__________________________________________________________________________

Figure 38. (Back - UPPER Half)

OFFICERS: ________________________________________President

_____________________________________________Vice-President

_______________________________________________Treasurer

____________________________________________________Secretary

DIRECTORS:

APPLICATION To the Board of Directors of

THE_____________________BANK

---------------------------hereby beg to apply for a line of credit from the-----------------Bank, during the pleasure of the Bank, of._______________for the purpose of___________________________________________________________________________________________________________________________

____________________________to be drawn during_______________________________________________________________________________________

As security________________offer

H. Approved Customers' Notes to be discounted from time to time, not exceeding $

D. Direct Loan secured by________________________________________________ $

E. " " " Endorsements of___________________________________ $

F. " " " ___________________________________________________$

Standing of proposed endorsers or full description of security offered

Name

Occupation

Estimated Worth

Your obedient servant

N.B. -If a Firm, each partner to sign under the firm signature

Figure 38. (Back - Lower Half) comparatively small amount. If large, the reason should be inquired into, as this means either carelessness in financing or that some worthless note or bon is carried as cash. Practically all the cash on hand should be carried in the bank, and the balance maintained should be commensurate with the amount of work which the account involves to the bank.

Comparison should be made with the bank ledger on the same date, and if outstanding checks have been allowed for by an entry on the liability side of the statement, the amount should agree, otherwise the deposit ledger balance will be the larger; if the reverse, the reason should be inquired into.