Calculate the value of 'Sales' from the following data Net Value Added at Factor Cost ₹ 800

Anurag Pathak28.60K November 11, 2023 0 Comments

Calculate the value of ‘Sales’ from the following data:

Particulars	₹ in Crores
(i) Net Value Added at Factor Cost	800
(ii) Subsidies	40
(iii) Change in Stock	(-) 70
(iv) Sales	?
(v) Intermediate Consumption	450
(vi) Consumption of Fixed Capital	40

Ans: 1,320 Crores

Solution:-

Gross Value Added at MP = Net Value Added at Factor Cost + Consumption of Fixed Capital + Net indirect tax (Indirect tax – Subsidies)

Gross Value Added at MP = ₹ 800 + ₹ 40 + (₹ 0 – ₹ 40)

Gross Value Added at MP = ₹ 800

Gross Value Added at MP = Value of Output (Sales + Change in Stock) – Intermediate Consumption

₹ 800 = [Sales + (-) ₹ 70] – ₹ 450

Sales = ₹ 800 + ₹ 70 + ₹ 450

Sales = ₹ 1,320 Crores

Anurag Pathak Changed status to publish November 11, 2023