Question

from the data given below net value added at factor cost is equal to income generated
operating stock 200
closing stock 400
purchase of raw material 300
sales 1200
corporate tax 100
undistributed profits 50
dividends 50
rent 150
interest 100
depreciation 200
indirect taxes 150
subsidies 50
wages and salaries 350.​

Answer 1

Answer:

2300

Explanation:

2020 is 280 years away from that year

Answer 2

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value of output = sales + change in stock

= 1200+(closing stock - opening stock) =1200 +200 = 1400

Gross Value Added at MP(GVA mp)

= value of ouput - purchase of raw material = 1400-300

= 1100

Net Value added at factor cost(FC)

= GVA mp  -depreciation - net indirect taxes

                                         

= 1100 - 200 - (indiect tax - subsudies)

= 1100 - 200 - (150-50)

                                                 

= 1100 - 200 - 100

= 800

Income earned =>

NDPfc = compensation of employees + Operating surplus + Mixed Income

                                     

= wages and salary +(interest + Dividend + undistributed profits + corporate tax)+Rent

                                     

= 350 + 100 + 50 + 50+ 100 + 150

= 800

 

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