Calculation of Change in Stock

Given data:
- Sales = 400
- Net value added at factor cost = 200
- Subsidies = 10
- Depreciation = 40
- Intermediate consumption = 100

To calculate the change in stock, we need to use the following formula:

Change in stock = Net value added at factor cost - Depreciation - Intermediate consumption + Subsidies - Taxes

Calculating Taxes

Before we can calculate the change in stock, we need to calculate taxes. To do this, we can use the following formula:

Taxes = Sales - Net value added at factor cost - Subsidies

Substituting the given values, we get:

Taxes = 400 - 200 - 10 = 190

Substituting Values in Change in Stock Formula

Now that we have calculated taxes, we can substitute the values in the change in stock formula:

Change in stock = 200 - 40 - 100 + 10 - 190

Simplifying the equation, we get:

Change in stock = -120

Therefore, the change in stock is -120.

Explanation

The change in stock represents the difference between the value of goods produced and the value of goods sold. In this case, the change in stock is negative, which means that the value of goods sold is greater than the value of goods produced. This could be due to a number of factors, such as a decrease in demand for the products or an increase in production costs. It is important for businesses to keep track of their stock levels and make adjustments as necessary to ensure that they are not overproducing or underproducing.