The method adopted is as follows. Having taken the net cost of the goods on the Home mann-facturer's invoice, the costs packing, shipment, insurance, interest charges, etc, are added up and the percentage that these represent on the net cost of the goods is worked out. The value of the shilling at the rate of exchange under which the goods were paid for is ascertained—say it is 48 cents. To this is added the percentage of packing and shipping charges—say 12 cents (this by the way would be very low, such percentages naturally varying with the value of the goods) and thus it is found that each shilling's worth of this particular cargo. laid down in Shanghai costs 60 cents. 'The department. to which this cargo is allotted is credited with so many thousand dollars' worth of stuff at a 60 cent dollar, the amount being checked by turning all the sterling charges into local currency at the same rate.
It must not be forgotten that to these laying down costs have to be added the local working exp uses, salaries and wage bill. A mean return for five years might thus easily show less than eight per cent. net profit on sales. If the store declares a higher dividend, it is because the capital has been turned over three or four times. The position of most of the stores
Text read from the printed page and cleaned; old type leaves the occasional error.