Question

Calculate “sales” from the following data:

				(Rs in lakhs)
(i)		Intermediate costs		700
(ii)		Consumption of fixed capital		80
(iii)		Change in stock		(−) 50
(iv)		Subsidy		60
(v)		Net value added at factor cost		1300
(vi)		Exports		50

Answer 1

NVA_FC = Rs 1300
GDP_MP = NVA_FC - Subsidies + Consumption of fixed capital
            = 1300 - 60 + 80 = Rs 1320
Also, we know that:
GDP_MP = Sales + Change in stock - Intermediate Cost
Sales = GDP_MP - Change in stock + Intermediate Cost
         = 1320 - (-50) + 700
i.e. Sales = Rs 2070