Homework Help is Here – Start Your Trial Now!
Business
Economics
Calculate the net value added at the market price of a firm: Items Amou nt Sale 400 Change in stock -20 Depreciation 30 Net indirect taxes 40 Purchase of machinery 200 Purchase of an intermediate 250 product

Calculate the net value added at the market price of a firm: Items Amou nt Sale 400 Change in stock -20 Depreciation 30 Net indirect taxes 40 Purchase of machinery 200 Purchase of an intermediate 250 product

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
**Net Value Added at Market Price Calculation** To determine the net value added at market price by a firm, consider the following items and their respective amounts: 1. **Sale**: 400 2. **Change in stock**: -20 3. **Depreciation**: 30 4. **Net indirect taxes**: 40 5. **Purchase of machinery**: 200 6. **Purchase of an intermediate product**: 250 Calculating the net value added involves summing up these components, each representing a financial figure for different aspects of the firm's operations. The sales figure represents total revenue, while changes in stock reflect inventory adjustments. Depreciation accounts for the loss of asset value over time. Net indirect taxes include taxes on production and business operations. The purchase of machinery is an investment in fixed assets and the purchase of intermediate products relates to inputs for production. By appropriately accounting for each, the net value added can be established, aiding in assessing the firm’s productive contribution at market prices.
Transcribed Image Text:**Net Value Added at Market Price Calculation** To determine the net value added at market price by a firm, consider the following items and their respective amounts: 1. **Sale**: 400 2. **Change in stock**: -20 3. **Depreciation**: 30 4. **Net indirect taxes**: 40 5. **Purchase of machinery**: 200 6. **Purchase of an intermediate product**: 250 Calculating the net value added involves summing up these components, each representing a financial figure for different aspects of the firm's operations. The sales figure represents total revenue, while changes in stock reflect inventory adjustments. Depreciation accounts for the loss of asset value over time. Net indirect taxes include taxes on production and business operations. The purchase of machinery is an investment in fixed assets and the purchase of intermediate products relates to inputs for production. By appropriately accounting for each, the net value added can be established, aiding in assessing the firm’s productive contribution at market prices.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS