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Find out sales (from chapter 3 methods of calculating national income) NVAatFC 4000 Depreciation 100 Excise duty 150 Subsidies 130 Intermediate consumption 1300 Increase in stock 500 Answer 4920?
Most Upvoted Answer
Find out sales (from chapter 3 methods of calculating national income)...
NVAfc + EXCISE DUTY (INDIRECT TAX) - SUBSIDIES + DEPRECIATION = GVAmp
4000 + 150 - 130 + 100 = GVAmp
4120 = GVAmp

NOW, WE KNOW THAT,
GVAmp = VALUE OF OUTPUT - INTERMEDIATE CONSUMPTION
4120 = VALUE OF OUTPUT - 1300
VALUE OF OUTPUT = 5420

NOW,
VALUE OF OUTPUT = NET SALES + CHANGE IN STOCK
5420 = NET SALES + 500
NET SALES = 4920
SO THE ANSWER IS 4920

HOPE THIS IS HELPFUL.

Community Answer
Find out sales (from chapter 3 methods of calculating national income)...
Calculation of National Income


  • Gross Value Added at Factor Cost (NVAatFC): 4000

  • Depreciation: 100

  • Excise Duty: 150

  • Subsidies: 130

  • Intermediate Consumption: 1300

  • Increase in Stock: 500


Calculation

To calculate national income, we need to use the formula:

National Income = NVAatFC – Depreciation + Taxes – Subsidies

Where Taxes = Excise Duty and Subsidies = Subsidies – Intermediate Consumption

Using the given values, we can calculate the national income as follows:

National Income = 4000 – 100 + (150 – 130) – (1300 – 130) + 500 = 4920

Therefore, the national income is 4920.
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Find out sales (from chapter 3 methods of calculating national income) NVAatFC 4000 Depreciation 100 Excise duty 150 Subsidies 130 Intermediate consumption 1300 Increase in stock 500 Answer 4920?
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