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ORTH METHO

ORTH METHO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Plss solve the FUTURE WORTH METHOD
5) The First cost of a passenger bus is P800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, P24,000; gasoline, 60 liters per day at P15 per liter; Oil, P80 per day; maintenance and repair, P40,000; labor P800 per day; miscellaneous expense, P18,000; depreciation, sinking fund at 10%. If the average passenger fare is P3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the b) Future worth method.
Transcribed Image Text:5) The First cost of a passenger bus is P800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, P24,000; gasoline, 60 liters per day at P15 per liter; Oil, P80 per day; maintenance and repair, P40,000; labor P800 per day; miscellaneous expense, P18,000; depreciation, sinking fund at 10%. If the average passenger fare is P3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the b) Future worth method.
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