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 = NDP_fc = compensation of employees + Operating surplus + Mixed Income
                                      = wages and salary +(interest + Dividend + undistributed profits + corporate tax)+Rent
                                      = 350 + 100 + 50 +50+100+150 = 800

income earned=800 

answer
 

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 = NDP_fc = compensation of employees + Operating surplus + Mixed Income
                                      = wages and salary +(interest + Dividend + undistributed profits + corporate tax)+Rent
                                      = 350 + 100 + 50 +50+100+150 = 800
Hence NVAfc is equal to NDPfc

Hello Friend,

Value of Output = Sales + Change in stock 

                          =  1200 + ( Closing Stock - Opening Stock )  - Purchase 

                          =   1200 + ( 400 - 200 ) - 300 

                          =   1200 + 200 - 300 =  1,100

Gross Value Added at MP  ( GVA mp ) = Value of Output - Purchase of Raw Material 

                                                             =  1,400 - 300  

 Net Value Added at Factor Cost (NVA fc) = GVP at  MP - Depreciation - Net Indirect Taxes(Indirect Tax - Subsidies)   

                                                                   = 1100 - 200 - ( 150 - 50 ) 

                                                                   = 1100 - 200 - 100

                                                                    = 800

Income Earned  =   :) 

 NDP fc = Compensation of Employees + Operating Surplus + Mixed Income 

            = Wages and Salary ( Interest + Dividend + Undistributed Profit + Corporate Tax ) + Rent 

            =  350 + (100 + 50 + 50 + 100) + 150 

                = 800

:)  There Fore,  Net Value Added at Factor Cost is equal to Income Generated 

 

Hello!!    :)
Value of output = Sales + Change in Stock - Purchase 
                         =  1,200 + ( Closing Stock - Opening Stock ) - Purchase 
                         =  1,200 + ( 400 - 200 ) - 300 
                         =  1,100
Net Value Added at Factor Cost ( NVA fc) = GVP at MP - Depreciation  - Net Indirect Taxes (Indirect Tax - Subsidies)
                                                                  = 1,100 - 200 - ( 150 - 50 ) 
                                                                 = 1,100 - 200 - 100 
                                                                  = 800
 Income Earned :) 
  NDP fc = Compensation of employees + Operating Surplus + Mixed Income 
               = Wages and Salary ( Interest + Dividend + Undistributed Profit + Corporate Tax ) + Rent 
               = 350 + ( 100 + 50 + 50 + 100 ) + 150 
                = 800 
: )  There Fore, Net Value Added at Factor Cost is equal to Income Generated 

 

From the data given below, prove that ‘Net Value Added at Factor Cost’ is equal to ‘Income Generated’. Particulars Rs in Crores Opening stock 200 Closing stock 400 Purchase of raw materials 300 Sales 1,200 Corporate tax 100 Undistributed profits 50 Dividends 50 Rent 150 Interest 100 Depreciation 200 Indirect taxes 150 Subsidies 50 Wages and Salaries 350