Question
An unincorporated farm sector produces 2000 kg of sugar cane. Farm structures and equipment has an opening balance sheet value of 7000 dollars. There are
An unincorporated farm sector produces 2000 kg of sugar cane. Farm structures and equipment has an opening balance sheet value of 7000 dollars. There are no farm inventories. An incorporated distillery purchases all sugar cane for 2 dollars per kg. The distiller holds 20% of this sugar cane as raw materials inventory and uses the remainder to produce 600 cases of rum. The distiller earns 20 dollars per case. Plant and equipment at the distillery has an opening balance sheet value of 3000 dollars. Distillery inventories are initially 2000 dollars. There are no other assets or liabilities. The government collects a 25% sales tax on sugar cane and rum, personal income taxes of 3000 dollars and corporate income taxes of 2000 dollars. 40 cases of rum are held as finished goods inventory by the distiller, 40 cases are consumed by households, 120 cases are consumed by the government and the remaining 400 cases are exported. Employee compensation at the distillery is 6000 dollars. The economy consumes 4000 dollars of imported food and purchases 8000 dollars of imported distillery equipment.
a. GDE is equal to __________.
b. Net Worth (opening balance) is equal to __________.
c. Value Added from the farmers is equal to __________.
d. Value Added from the distiller is equal to __________.
e. Mixed Income is equal to __________.
f. Surplus is equal to ___________.
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