Question

Estimate operating surplus from the following data:

	(₹ in crore)
(i) Rent	170
(ii) Interest	180
(iii) Undistributed profit	220
(iv) Mixed income	400
(v) Dividends	200
(vi) Net indirect taxes	210
(vii) Corporation tax	80

Answer 1

To estimate the operating surplus, we include:

Included items (₹ in crore):

Rent = ₹ 170

Interest = ₹ 180

Undistributed Profit = ₹ 220

Dividends = ₹ 200

Corporation Tax = ₹ 80

Excluded items (₹ in crore):

Mixed Income = ₹ 400

Net Indirect Taxes = ₹ 210

Formula for operating surplus:

Operating surplus = Rent + Interest + (Undistributed Profit + Dividends + Corporation Tax)

= 170 + 180 + (220 + 200 + 80)

= 170 + 180 + 500

= ₹ 850 crore