Financehome The squire and the doctor are now shareholders. The Smiths have learnt their lesson and Mrs Smith now keeps a careful eye on the use being put to the money. She has become more than an accountant, she is now in charge of finance. She brings together the ideas of her enthusiastic husband and sons and works out the plan of the number of trailers to be made and sold. Without calling it by such a name, she has adopted the modern principles of budgetary control. Charlie wants to experiment with new designs for trailers and Les feels sure that he could sell them, but Mrs Smith will have none of it; she says it is no use spending money on experiments and then not being able to pay for production. Charlie then wants to spend all the money he can get on making larger batches of trailers with more labour, but his mother points out that this is useless unless Les can sell them. She says the only way to do it is to get out a plan of the trailers they are going to produce and the dates on which Les is going to sell them. They are faced with the problem whether to try to make fifty trailers with a profit of £i on each or ten trailers with a profit of £5 on each. Mrs Smith points out that the higher their production the more money they will need to pay for the materials and wages before they sell the product. It is Mrs Smith's job to coordinate the ideas of her sons. Unfortunately Mrs Smith gets ill and during her illness the family get in the services of a retired bank manager who is a great man for figures. He calculates everything to the last detail and covers many pieces of paper with figures, which impresses the Smiths although they do not understand them nor do they realize that Charlie's estimates of the material and time taken in making a trailer are only guesswork and that his calculations of thork done by his paid assistants are inaccurate. The bank manager does not realize that his figures cannot be more accurate than those supplied to him from the workshop and that if he is to obtain the cooperation of each of the Smiths they must understand what he wants and why he wants it. The Smiths are still making a profit on each trailer, but as a result of the inaccurate calculations of the bank manager they again find themselves in the position of being unable to complete what they have begun and to be in danger of getting into financial difficulties. They realize that an expanding company can go bankrupt while it is still making profits. They go to their friends the squire and the doctor, who in turn approach others with a view to raising more capital to complete and sell the trailers which have been begun. The position is further complicated by the fact that the Smiths had forgotten that they must pay each year tax on the profits they earn two years before. Fortunately the friends of the squire and the doctor have sufficient confidence in Mr Smith and more capital is found. Mrs Smith recovers her health but realizes that the work that is involved is becoming beyond her and they take on a young accountant. homemoney to purchasehow