Example 16
Calculate Value Added of firm A,B ,C and D
| A | B | C | D | Total | |
| VALUE OF OUTPUT | |||||
| Sale to B | 20 | 0 | 0 | 0 | |
| Sale to C | 30 | 40 | 0 | 0 | |
| Sale to D | 0 | 60 | 100 | 0 | |
| Household Consumption | 40 | 50 | 100 | 300 | |
| Change in Stock | 10 | 0 | 0 | 0 | |
| Sale to Government | 0 | 0 | 0 | 100 | |
| Exports | 0 | 0 | 100 | 0 | |
| Total | 100 | 150 | 300 | 400 | |
|
Less VALUE OF INTERMEDIATE CONSUMPTION |
|||||
| Purchase from A | 0 | 20 | 30 | 0 | |
| Purchase from B | 0 | 0 | 40 | 60 | |
| Purchase from C | 0 | 0 | 0 | 100 | |
| Total | 0 | 20 | 70 | 160 | |
| VALUE ADDED | 100 | 130 | 230 | 240 |
(i)
Value added by each firm
| Firm A | 100 |
| Firm B | 130 |
| Firm C | 230 |
| Firm D | 240 |
(ii)
Total Value Added = 100 + 130 + 230 + 240 = 700
(iii)
Total consumption Expenditure
= Sales to households by A + Sales to households by B + Sales to households by C + Sales to households by D + Sales to government by D
= 40 + 50 + 100 + 100 + 300
= 590
