BIG, WELL MANAGED, INVESTMENT

NZ Truth, Issue 1043, 21 November 1925, Page 17

BIG, WELL MANAGED, INVESTMENT

The fact that ordinary shareholders have received 10 per cent, for the year is of course due to the fact that pre.ference shareholders clearly get a fixed and probably guaranteed cumulative dividend of only 6 per per annum. This does not m any way, however, affect the argument that the returns on ordinary capital — trade risks, seasonal losses, etc., being taken into due consideration — are the reverse of sensational. <The balance-sheet shows assets amounting to £666,852. Stocks m hand and afloat £280, 855, book debts £87,112, warehouses, fixtures and plant £248,692, N.Z. Government inscribed stock £40,323, bills receivable £1110, whilst at the National Bank and m

hand there was cash to the tune of £8752.' ' ' ■ . The liabilities were capital paid up £427,553. Sundry creditors and mortgages £143,031, reserve fund £30,114, arid profit and loss balance £65,822; Put' these figures down on paper m balance-sheet form, and you, reader, will then be better able to , appreciate some o£ the finer points about correct company finance. Here you will miss the good old stock items such as bank overdraft, calls m arrear, and similar/glaring errors of principle. ' , But you will find abundant evidence qf sound finance, and keen, brainy management. .•■."•.