From the following data relating to a firm (a) estimate the net value added at market prices (b) show that the net value added at factor cost is equal to the sum of factor income :

From the following data relating to a firm (a) estimate the net value

1.	From the following data relating to a firm (a) estimate the net value added at market prices (b) show that the net value added at factor cost is equal to the sum of factor income :
Answer» `GVO_(MP)=` Sales + Change in stock = Domestic sales + Exports + Increase in stocks `=1080+120+120` `= Rs 1320` thousand `GDP_(MP)=GVO_(MP)-` Intermediate consumption `=GVO_(MP)-` (Domestic purchases + Import of Raw material) `=1320-(360+60)=1320-420` `= Rs 900` thousand (a) `NDP_(MP)=GDP_(MP)-"Dep."` `=900-45` `= Rs 855` thousand (b) To prove that `NVA_(FC)=` Sum of factor income (i) `NVA_(FC)` or `NDP_(FC)=GDP_(MP)-"Dep."-NIT` `=GDP_(MP)-"Dep."-` [Indirect taxes - subsidies] `=900-45-(30-0)=900-45-30` `= Rs 825` thousand ...(i) (ii) Sum of factor income `=COE+OS+MI` =(Salaries + Wages)+(Rent + Interest + Dividend + Undistributed Profits)+MI `=360+(45+270+90+60)+0=360+465+0` `= Rs 825` thousand ...(ii) From (i) and (ii) : `NDP_(FC)//NVA_(FC)=` Sum of factor income