THE FARMERS' CO-OPERATIVE ORGANISATION SOCIETY OF N.Z. LTD.

NZ Truth, Issue 1126, 30 June 1927, Page 14

THE FARMERS' CO-OPERATIVE ORGANISATION SOCIETY OF N.Z. LTD.

' LIABILITIES ASSETS . £ £ ■ £. £ Capital, paid up .-. 191,469 *15,570 Properties, F. &L. G9,055 * 425 Forfeited Shares Machinery and , Reserve .. •• 3512 * 2030 Plant .'.. .., 8250 * 693 . ■.. Stock on hand .. 31.501 t 2230 Sharlholders' Funds ■> 194,981 *20.600 Debtors (abbut half _,_„„,. Mortgages .. .; 14,800 •* 2350 secured) .. .. 166,987 115,396 Fixed Deposits .. 32,285 ■ t16,445 Shares. 'm other Clients' credits .. 24,057 t 7900 companies .. 4900 — Trade .creditors .. 12,368 * 4775 War Loan .. .. 304 * 38 Accrued interest .. 2413 t 708 Gash • .. v .. 261, * 20 Banks .. 33,262 t22,165 Profit and Loss Bills payable •• .... ■ — t 15.64 Appro 32.573 f 4607 £314,166 t21,057 ,£314,166 121,057 NOTE. —indicates increase and t decrease compared with last year's figures.

by reduction of paid up capital, that ends the matter. ' „ . Next year there is a dividend, and everyone is happy, and not 10 per cent even-think of the loss of capital. That is over and done with, and a fresh and better era is enjoyed. "Fiat Lux," from a close study Of this firm's 1927 accounts, cordially agrees with the opinion expressed by the auditors that the corner has been turned. He would add that the time is opportune "for the management to complete its excellent .york of the last two years by adding to the reorganisation of the business, the reorganisation of the firings balance This could be effected by reducing the paid up capital' - by £2 per share, equal to £50,346, wiping out the accumulated losses of £32,572 and carrying the balance, £17,774, to a general revenue account. This will' immeasurably improye the position and prospects of the business, and with ordinary luck and a continuance of the present sound' management, regular dividends should surely follow. A 'the balance-sheet shows a vastly improved position to that of a year ago. The floating liabilities have been reduced by no less' than . a;, total of £41,657, which considering the conditions ruling during 1926. is a real achievement. There still remains plenty of scope for further consolidation, however, particularly "■. regarding fixed deposits and bank advances and it is to be hoped that further attention can be paid to these two items during the current year. , . ' ". ' Summarising the origin of the improvement, of £41.657 m the position as shown m the balance-sheet, shareholders have contributed rcalls amountting to £20,600, whilst the assets, particularly book-debts, have been reduced by a net total of £21,057. At March 31, 1926, the company's net surplus of floating assets over floating liabilities was. £60,980, whilst at March 31, 1927, this ; liquid surplus had improved by £24,088 to £85,068. .'Dealing seriatbm with the items m the balance-sheet the increase of £20,600 m the Shareholders' funds has been noted and it is pleasing to find that the share register has been purged of non-paying members by the forfeiture of. shares. In these circumstances it is fair to assume that the present amount of unpaid calls, £59,397, is a sound'asset and that the cash will continue to flow m regularly m induction. In this writer's opinion the receipt of this amount of cash plus the wiping out of accumulated losses by reduction of paid-up capital by £2 per share would put this company m very line shape indeed. Provided the present sound ( and pro-

and plant probably 12% per cent, would be fail*. Debtors have been satisfactorily reduced by £15,396 and now total £171.---587 against which a reserve of £4600 has been-created for doubtful accounts. Last year the reserve was £8420, but as it has entirely disappeared it must be presumed that debts to that amount proved bad and were written off. Of the total now due £-82,385 is secured and £89,202 is owing ,on open accounts. In dealing with the profit and loss account, it may be noted that owing to the fact that m 1926 an accumulation of losses were included m the year's charges an accurate comparison of sail the working expenses is not possible. For those expenses, however, which can be compared, there is an increase of £2552, but ' against this the compahy^s gross earnings increased -by nearly. £5000. The net result for the year was an improvement of £2500, which was a very excellent result. It is abundantly apparent that this concern, is on. the rise and "Fiat Lux" would he pleased indeed if these promises are fully consummated m the near, future so that one more Farmers' Co-op. may be added to the piteously small list of such successes.

Choosing a birthday present for a man is not as simple as shelling peas. You may so easily give him something he has no use for. \ Tons of money are wasted on presents that are received with perfunctory smiles and thanks but are not valued. Tastes differ widely, but there is one taste common to 95 men out of every hundred—the taste for tobacco. If you want to give a present that will appeal to nearly every man, give him something to smoke, preferably a- bit of good "cut-up," and the best cut-up tobacco is our -own New Zealand-grown. This 'baccy is the purest of any because (unlike the imported) it contains only a minimum quantity of nicotine. Consequently it can be smoked all day long "and then some" with 'enjoyment .and .without injury to health. So a really acceptable (and inexpensive) birthday gift Is, say, a pound (or a couple of pounds) of N.Z. tobacco. It is made m various strengths. "Riverhead Gold", is mild, "Navy Cut" (Bulldog) Is" medium, and "Cut Plug No. 10" (Bullshead) is full flavoured.*