calculate net value added at factor cost is equal to income generated.
opening stock=200
closing stock=400
purchase of raw material=300
sales=1200
corporate tax=100
undisturbed profits=50
dividend=50
rent=150
Intrest=100
depreciation=200
indirect taxes=150
subsidies=50
wages and salary=350

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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