For the purpose of obtaining merchandise from you on credit, we make the following statement in writing, intending that you should rely thereon respecting our financial condition as of (Date)__

(All queirione ebould be answered. When no Agures are inserted, write word “None.")

Do you sell or pledge your accounts to creditors, banks, finance outa paaies or others?
If so what amount is so sold or
pledged?
What amount of your accounts have you sold or pledged during the past twelve months? |
Are any creditors secured by mortgage or lien of any sort?_

If so, how?

Are any claims in attorneys' hands or suits against you?___

Have you merchandise on consignment or conditional sale?_

If business property is leased, for what term and what resta!?,

Name and locality of your bank or banka

Location and kind of business.

Under the laws of what state is your business incorporated?,

Previous business experience.

Where

If so, what amount?

It is important that every question on both sides of this sheet be correctly answered and that the blanks be carefully filled to. In answering questions involving amounts write the word "none" where figures do not apply. You will had it advantageous to herp a copy of this statement for comparison with the showing you will be able to make a year beson

Figure 212. Form Adopted and Recommended by the National Associa

tion of Credit Men (face)

The foregoing statement has been carefully read (both printed and written matter) and is to all respects completo, accurate and truthful. It discloses to you the true state of our Enancial condition on the date above stated. Since that time there has been pe material unfavorable change in our financial condition; and if any such change takes place we will give you sotion. Until such sotics is gives, you are to regard this as a continuing statement

Figure 21b.

State

Form Adopted and Recommended by the National Association of Credit Men (back)

The foregoing statement has been carefully read (both the printed and written matter,) and is in all respects complete, accurate and truthful. It discloses to you the true state of my (our) financial condition on the day of 19 bees to material unfavorable change in my (our) financial condition; and if any such change takes place I (we) will give you notice given, you are to regard this as a continuing statement.

Since that time there has
Until sach notice is

Be sure to give a Complete List of Houses You Deal With and Amount Owing Each on reverse side of this sheet, also record of land and buildings

Figure 22a. Property Statement-Envelope Form (face)

(OVERS

Figure 22b. Property Statement-Envelope Form (back)

particular business and those relationships suggest questions to him by means of which he soon knows the business of his customer as if it were his own. He is thus put in a position, not only to protect the house, but also through just and tactful suggestion to aid his customer in the financial administration of the customer's business.

To form correct conclusions, it is essential that the assets and liabilities be stated in such a way as to place beyond doubt the nature of the items included. It is also necessary to have a clear understanding of the meaning of the varied items commonly included. For the purpose of this explanation, we shall assume that a statement is before us filled out on the standard form approved by the National Association of Credit Men (Figure 17).

Assets: The term "ASSETS" refers to property owned, not necessarily free from debt, but including all items the possession of which is presumed to lead to the creation of profits or the enjoyment of property rights. In the United States these are generally listed at the left hand side with the liabilities opposite. Assets may be roughly classified as being of two types: "quick" and "other assets." By quick assets or current assets are meant those which include cash or items which can be readily transformed into cash, such as accounts receivable, notes receivable, merchandise or government bonds. Among "other assets" would be included machinery, fixtures, land, buildings, of just as definite a value, but of such a nature that ready transformation into cash is impossible.

Cash in hand refers to money in the drawer and safe. Sometimes it does include items which are in reality not cash, as for instance, I. O. U.'s, memoranda covering withdrawals, paid cash bills and expense vouchers. If unduly large, it means either carelessness in the handling of money or the inclusion of items which are not properly included in cash.