12 Terrace Review — Wednesday, February 17, 1988 fit. ee Produce profits from your fixed assets _ Fixed assets are the assets your business needs to enable you to produce your goods’ — - and services which, in tum, generate sales. fj While your fixed assets — things like land, buildings, vehicles, machinery, and equip- ment — do not produce sales on their own, you can manage them to contribute to pro- aan Seman The purpose of managing fixed assets is by Phil Hartl to keep fixed expenses associated with Manager, Terrace them, such as interest and depreciation, Federal Busl under control so that you can keep your ederal Business = celling prices competitive. Development Bank Fixed Versus Current Assets Fixed assets differ from current assets in two important ways: they generally are not for sale and they remain in the business for longer than a year, They do not get used up in your production pro- cess, but they do lose a portion of their usefulness over time. Like current assets, fixed assets are listed on the left side of your balance sheet. They are listed below current assets in the order of their expected useful life. For that reason, land is usually listed first, followed by buildings, furniture and fixtures, machinery and equip- ment, and vehicles. The initial value of such assets in your records is the cost you in- curred to acquire them. Except for “‘land” which does not wear out, fixed assets deteriorate each year. The estimated amount of the deterioration is charged as an exp and is entered on your profit-and expense. There are several methods of calculating the depreciation of fixed ense to your business for the year, -loss statement as a depreciation assets. When choosing one of them, consider your business’s size and profit picture. Your accountant can explain-the benefits of each ‘accounting method and help you select the most appropriate one for your business. Consider Leasing Assets Before you purchase fixed assets, consider their cost as well as the future expansion needs of your business. In some cases, alternatives such as leasing certain fixed assets or purchasing used items also should be evaluated. Leasing can be an attractive alternative to the acquisition of machinery, equipment, or vehicles. If the suitability of your fixed assets could be affected by new government regulations, or fast- .§ changing technology, leased assets can be a good choice. In addi- tion, leasing can free up a substantial amount of working capital for other purposes. The initial price of land is only one consideration to make when you are seeking a business site. Volume of customer traffic, poten- tial market growth, ease of access, ongoing cost of services, and availability of supplies and labor are also key factors to consider. In addition, the site should be able to accommodate expected growth for the foreseeable future. Before investing in a building, rangement of offices, machinery, prepare a paper layout of the ar- and showrooms to see whether the building you plan to buy — as well as any local planning regula- tions — will permit you to expand horizontally or vertically as your business grows. Depending on your business, you may require fashionable furn- ishings and fixtures to project the right image. The extra expense of interior decoration may be warr anted, but customers generally are more attracted by good service than a tuxurious waiting room. Whether leased or purchased, new or used, your fixed assets should always contribute to the profit of your business. Good management of your fixed assets will keep expenses in line and im- prove your competitiveness. B.C. Credit Unions to air TV series TERRACE — The Terrace and District. Credit Union has. an- nounced that CFTK and af- filiated stations broadcast the pilot program of B.C. Credit Unions’ proposed television series, called ‘‘Insights’’, early in February. This first show con- centrated on personal retirement planning. - The Credit Union system plans to air further “‘Insight’’ programs based on the results of the pilot, according to Dennis Brewer, General Manager. The full series will examine a range of topical business news and issues as they affect average British Columbians. _. Hosted by investment analyst Ted Ohashi, the first 30-minute educational program featured four experts discussing retire- Pal ment planning options and the different kinds of RRSP and RRIF plans now available to the public, pe ‘We believe that educational TV programming is an excellent way for financial institutions to reach.the public,’’ said Brewer. “It’s a modern way of meeting the intense public interest in business affairs, personal finances and issues like retire- ment planning. In addition to airing this program on televi- sion, we are also making it available in video cassette form for members to borrow from the B.C. Credit Union branches.”’ In the Terrace and Northwest areas, the program was shown on CFTK on Feb. 14 and will repeat on Feb. 21 at 4:30 p.m: nd easy... TERRACE _ -- BUSINESS GUIDE _ ie West Coast. | Thornhill Grocery Chimney Service | & Laundromat Clean Chimney Maintenance x Pech 7 dys ower , “nm pam. Dealer for: x Fresh produce ‘Take-out’ foods FINGARD CHIMNEY * Stamp Agency FIRE EXTINGUISHERS ___ 835-9557 on omn . : | across from Thornhill Elementary Pro TECH ELECTRONICS | KALUM ELECTRIC 4519 LAKELSE AVE., TERRACE Major Appliances: - 635-5134 Frigidaire Electrohome Complete electronics Westinghouse Quasar T.V. repair services Sales & Service VCR Parts Depot We service Service centre for most faa major brands for all makes all makes ; as 3234 Kalum St. Satelite TV systems Kalum Electric Ltd. cas 62 Quick a Your complete ae source fo a WAT CONTRACTING needs. Commercial & Residential Construction, Northwest Consolidated Maintenance, Repairs & Renovations . Suppy Lid. Wood Stove installations 43916 MOU 635-7156 NTAINVIEW AVE. 635-5859. §239 Keith Ave., Terrace Specializing Ine BUSINESS SERVICES axd ane * OPES rine Ce Te Regal 638-8195 _| North Coast Auto. _#1-3238 Kalum St, Terrace, B ona od Repairs Ltd sce 000r Dr. Terrace B.C. V8G.2N4 * Inflatable Boat Repairs & a? Durable — High Quality Vulcanizing Repairs o% TERRACE LTD. 4711-A Kelth Ave. ; We specialize in Gonvever Balt, %% yi natallations, Splicing, and Repairs. Auto Glass Specialists Vulcanizing and Pulley Lagging. ° ; 24 HOUR SERVICE HI-QUALITY BELTING & . CONTRACTING SERVICES f 638-8530 638-0663 - Industrial 638-1876 f ICBC claims handled promptly 638-1166 MERC CRUISERS x MARINER OUTEOARDS HAMILTON & OUTBOARD MARINES JETS rr ld Commorcial& ~ DL No. 7560 & POWER PRODUCTS WI ring -KEN’S MARINE SEE ait at 4946 Greig Ave. Phone: 635-2909 | B&G Nate’s Electric Nathan Waddell — Electrical Contractor 4031 Lazelle Ava, Terrace _ "DOC’S CARTAGE AND STORAGE CO. (1984) LTD. Agents for UNITED GROCERY United Van Lines Ware Laundromat & Carwash .. across TOWN OF across thet nation. . . 635-2728 Open 8:30 - 10:30 daily 27018. 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