We learn about Depreciation (Answers from profit and loss math problems are posted here!)

Hi readers!

Once again, I'm here to share a new lesson regarding Business Math! I can feel your enthusiasm going down. However, don't feel glum because I'll make this week's post as short as a mini skirt (sorry for the lame analogy lol!) and as sweet as an ice cream cake. :)

Photo from Real Simple

Did I make you hungry? I prefer you grab something to eat first so as to make learning and understanding more sweet and fun!

To get started, you need to know the terms:

Depreciation - is the lost in value of physical assets through its use.

Depreciation schedule -  is an accounting procedure for determining the amount of value left in a piece of equipment. (as gathered from wikipedia)

depreciation charges - are the yearly deposits into the depreciation fund.

depreciation fund - is the portions of a given amount at the end of its useful life or the difference between the original cost of the asset.

Book value of the asset - is the the sum in the depreciation fund at the end of the year.

Now that you have gotten to know the terms, it's time you apply what you've learned in this sample problem! 

I hope I had made the lesson as sweet and as easy as a piece of cake! Please feel free to comment if you have any, questions, concerns, suggestions, or remarks. I would really really really appreciate it if you do! :D 

Again, this is Kat, believing that, Business Math Can Be Sweet! :)

Profit and Loss math problem Answers:

1. Cost of goods sold = P9,586 

2. a) Net sales = P871,433.51 

    b) Gross profit = P294,113.11 

    c) Net profit = P244,827.13 

Checked by Prof. Crisencio Paner