ABSTRACT
The statement of profit or loss accompanying the balance sheet is a summary of the surplus account showing the net profit from operations of all kinds, the amount of depreciation reserved, income tax incurred and interest and dividends paid on securities. An alternative line of defence is to plead that shareholders are ignorant and apathetic, interested only in profits and that they are given all the information that they want or are capable of digesting. The president’s message should interpret the foregoing accounts to the shareholders and include the results of a skilled analysis of the present condition and future prospects both of the company in particular and the industry in general. A report which has recently attracted much favorable comment in financial circles works out certain important comparative ratios reviews the present position of the company and by means of a study of hog prices and production over a number of years throws some light on future prospects.
