Operating Surplus Solution

STEP 0: Pre-Calculation Summary
Formula Used
Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes
OS = VO-ICN-CE-MI-CFC-NIT
This formula uses 7 Variables
Variables Used
Operating Surplus - Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes.
Value of Output - Value of Output refers to the total monetary worth of goods or services produced by a firm, industry, or economy within a specific period of time.
Intermediate Consumption - Intermediate Consumption refers to the value of goods and services that are consumed as inputs in the production process but are not retained in the final product.
Compensation of Employees - Compensation of Employees refers to the amount paid to employees directly or indirectly by the employer in exchange for their services.
Mixed Income - Mixed Income is the income generated by unincorporated enterprises, such as small shopkeepers, retail traders etc and own-account workers such as farmers etc.
Consumption of Fixed Capital - Consumption of Fixed Capital represents the decline in the value of fixed assets due to wear and tear, obsolescence, or aging over time.
Net Indirect Taxes - Net Indirect Taxes refers to the difference between indirect taxes collected by the government on the production and sale of goods and services and subsidies provided by the government to producers.
STEP 1: Convert Input(s) to Base Unit
Value of Output: 80000 --> No Conversion Required
Intermediate Consumption: 25080 --> No Conversion Required
Compensation of Employees: 18000 --> No Conversion Required
Mixed Income: 2000 --> No Conversion Required
Consumption of Fixed Capital: 2505 --> No Conversion Required
Net Indirect Taxes: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
OS = VO-ICN-CE-MI-CFC-NIT --> 80000-25080-18000-2000-2505-3000
Evaluating ... ...
OS = 29415
STEP 3: Convert Result to Output's Unit
29415 --> No Conversion Required
FINAL ANSWER
29415 <-- Operating Surplus
(Calculation completed in 00.004 seconds)

Credits

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IGNOU (IGNOU), India
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20 Macroeconomics Calculators

Operating Surplus
Go Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes
Components of Aggregate Demand
Go Components of Aggregate Demand = Private Consumption Expenditure+Investment Expenditure+Government Expenditure+Net Exports
Real Effective Exchange Rate
Go Real Effective Exchange Rate = (Consumer Price Index of Domestic Nation*Nominal Effective Exchange Rate)/Consumer Price Index of Foreign Country
Net Factor Income from Abroad
Go Net Factor Income from Abroad = Net Compensation of Employees+Net Income from Property and Entrepreneurship+Net Retained Earnings
National Disposable Income
Go National Disposable Income = National Income+Net Indirect Taxes+Net Current Transfers from the Rest of the World
Gross Domestic Product at Factor Cost
Go Gross Domestic Product at Factor Cost = Gross Domestic Product at Market Price+Subsidies-Indirect Taxes
Change in Money Supply
Go Change in Money Supply = (1/Required Reserve Ratio)*Change in Bank Reserves-(Initial Deposit Amount)
Personal Disposable Income
Go Personal Disposable Income = Personal Income-Personal Taxes-Miscellaneous Receipts of Government
Life Expectancy
Go Life Expectancy = Current Age of the Individual+Average Life Expectancy-Adjustment Factor
Private Final Consumption Expenditure
Go Private Final Consumption Expenditure = Household Final Consumption Expenditure+Non Profit Private Institutions FCE
Gross National Product at Market Price
Go Gross National Product at Market Price = Gross Domestic Product at Factor Cost+Net Factor Income from Abroad
Net Domestic Product at Factor Cost
Go Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes
Net Domestic Product at Market Price
Go Net Domestic Product at Market Price = Gross Domestic Product at Market Price-Depreciation
Growth Rate of Money Supply
Go Growth Rate of Money Supply = Rate of Inflation+Growth Rate of Real Gross Domestic Product
Real Gross Domestic Product Per Capita
Go Real Gross Domestic Product Per Capita = Real Gross Domestic Product/Total Population
Expenditure Multiplier
Go Expenditure Multiplier = Initial Consumer Price Index/Change in Government Spending
Gross National Disposable Income
Go Gross National Disposable Income = Net National Disposable Income+Depreciation
Velocity of Money
Go Velocity of Money = Nominal Gross Domestic Product/Money Supply
Real Wage
Go Real Wage = Nominal Wage/Consumer Price Index
Simple Deposit Multiplier
Go Simple Deposit Multiplier = 1/Required Reserve Ratio

Operating Surplus Formula

Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes
OS = VO-ICN-CE-MI-CFC-NIT

What do you mean by Operating Surplus ?

Operating Surplus is the sum total of income from property, i.e., rent, royalty, and interest, and income from entrepreneurship, i.e., profit. Operating surplus arises in both government & private enterprises. However, it does not arise in general government sector, as they operate for the benefit of general public. Therefore, factor income is nil in general government sector. Operating surplus is often used as a measure of a company's operational efficiency and profitability. It indicates how effectively a company is managing its resources and generating profits from its core business operations. This metric is particularly useful for comparing the performance of companies within the same industry or sector, as it focuses solely on the income and expenses directly related to their main business activities.

How to Calculate Operating Surplus?

Operating Surplus calculator uses Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes to calculate the Operating Surplus, Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes. Operating Surplus is denoted by OS symbol.

How to calculate Operating Surplus using this online calculator? To use this online calculator for Operating Surplus, enter Value of Output (VO), Intermediate Consumption (ICN), Compensation of Employees (CE), Mixed Income (MI), Consumption of Fixed Capital (CFC) & Net Indirect Taxes (NIT) and hit the calculate button. Here is how the Operating Surplus calculation can be explained with given input values -> 29495 = 80000-25080-18000-2000-2505-3000.

FAQ

What is Operating Surplus?
Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes and is represented as OS = VO-ICN-CE-MI-CFC-NIT or Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes. Value of Output refers to the total monetary worth of goods or services produced by a firm, industry, or economy within a specific period of time, Intermediate Consumption refers to the value of goods and services that are consumed as inputs in the production process but are not retained in the final product, Compensation of Employees refers to the amount paid to employees directly or indirectly by the employer in exchange for their services, Mixed Income is the income generated by unincorporated enterprises, such as small shopkeepers, retail traders etc and own-account workers such as farmers etc, Consumption of Fixed Capital represents the decline in the value of fixed assets due to wear and tear, obsolescence, or aging over time & Net Indirect Taxes refers to the difference between indirect taxes collected by the government on the production and sale of goods and services and subsidies provided by the government to producers.
How to calculate Operating Surplus?
Operating Surplus represents the profit earned by a company before taking into account non-operating expenses such as interest on debt or taxes is calculated using Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes. To calculate Operating Surplus, you need Value of Output (VO), Intermediate Consumption (ICN), Compensation of Employees (CE), Mixed Income (MI), Consumption of Fixed Capital (CFC) & Net Indirect Taxes (NIT). With our tool, you need to enter the respective value for Value of Output, Intermediate Consumption, Compensation of Employees, Mixed Income, Consumption of Fixed Capital & Net Indirect Taxes and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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