Question

From the data given below, estimate operating surplus:

	(₹ in lakh)
(i) Wages and salaries	232
(ii) Value of output at market prices	845
(iii) Intermediate consumption	418
(iv) Indirect taxes	80
(v) Subsidies	10
(vi) Consumption of fixed capital	25

Answer 1

To estimate the operating surplus, we apply the formula:

Given data (₹ in lakh):

Value of output at market prices = ₹ 845

Intermediate consumption = ₹ 418

Indirect taxes = ₹ 80

Subsidies = ₹ 10

Wages and salaries = ₹ 232

Consumption of fixed capital = ₹ 25

The net indirect taxes, then use the formula for operating surplus:

Net indirect taxes = Indirect taxes − Subsidies

= 80 − 10

= 70

Operating surplus = Value of output − Intermediate consumption − Net indirect taxes − Compensation of employees − Consumption of fixed capital

= 845 − 418 − 70 − 232 − 25  

= 845 − 745

= ₹ 100 lakh