From the following information, estimate : (i) Value of output, (ii) Net value added at factor cost, (iii) Prove that income generated is equal to net value at factor cost.

Answer

Rs. 7300 crores

Explanation

(i) Value of output
= Sales+Increase in unsold stock
=10625+600
=Rs. 11225 crores
(ii) Net Value Added at Factor Cost
= Sales+ Increase in unsold stock - Purchase of raw materials - Depreciation- (Indirect taxes- Subsidies)
=10,625+600-2,625-500-(1200-400)
=Rs. 7300 crores
(iii) To prove Income Generated = Net Value Added at Factor Cost Income Generated
= Operating surplus + Wages and Salaries + Mixed incomes
= 3740+3460+100= Rs. 7300 crores
So, Net Value Added at Factor Cost = Income Generated = Rs. 7300 crores