442

Insolvent Debtors-(Continued)

assignments, 307

composition settlement, 303

extension of time, 301

methods of procedure, 300

settlement, advantages of amicable, 308

Installment Sales, 357-367

collections, 366

ethical considerations, 357

financial problems of, 359

losses through, 361

Liabilities (Continued)
defined, 157

fixed, defined, 161
Liability Insurance, 331
Liability Reserves, 167
Liens,

unpaid seller's, 282
Life Insurance, 331
Liquidation,

arranging for, 320
bankrupt's estate, 324

443

analyses of, comparison of, 165-182
preparation for, 166
capital relationships, 173-175
classification of, 168-180

cost of borrowed capital, 180
cost of total assets employed, 180
current, 169

current assets. to total assets employed,

173

current liabilities

to net worth, 172

to total assets employed, 174

fixed assets to total assets employed,

173

long term borrowings to total assets
employed, 175

measures of costs of capital, 179
measures of earnings, 178

net profit

to net worth, 179

to sales, 179

net worth

to fixed assets, 172

to total assets employed, 175
other assets to total assets employed,

174

receivables to inventory, 170
sales

to fixed assets, 177
to inventory, 176
to net worth, 177
to receivables, 175

to total assets employed, 178
static relationships, 169-173
total debt to net worth, 171
velocity relationships, 175-178
Receivables,

classification of, 393

discounting of, 393-395

relation of receivable companies to com-
mercial banks, 394

Receivership, 310-329

conditions of, 312

legislation, uniform, development of,

310

nature of, 311

receiver, powers and duties of, 313
Rediscount,

by Federal Reserve Banks, 374
eligibility of commercial paper for, 375
Relationships (See "Ratios")

Remittances,

defective, 275

Replevin, 287
Reports,

of salesmen, 126

system of, 238

Resale, 284

Rescission, 284

Reserves,

appropriation, 167

444

Reserves Continued)

evaluation, 167

liability, 167

Retail Buyer,

collecting from, 353

overdue accounts, 354
Retail Credit, II

application for, 343

authorizing charge purchases, 350
clearing accounts, 348

collecting from retail buyer, 353
collection management, 355
credit for ultimate consumer, 342
credit limits, 345

customer identification, 345
department organization, 347
granting of, 342

manager as a sales builder, 352
overdue accounts, 354

returned goods problem, 347

special features, 341-356

Returned Goods,

retail, 347

Revocable Letters of Credit, 46

29

marketing problems, effect of on, 29
nature of commodity, effect of on, 27
net, factors governing length of, 27
pay-day customs, effect of on, 28
Title,

passing of, defined, 61
Trade Abuses, 269-280
cancellation of orders, 273
claims for shortage, 272

overdue accounts, interest on, 271
remittances, defective, 275

unearned discount, taking of, 270

Trade Acceptances, 46-51

receivable, defined, 153
Trade Bills, 42

Trade Discounts, 32

Trade Journals,

as source of information, 131