Here below, you are given statistical data of country:
Compensation of employees:
Non-financial corporations: 980,000
Financial corporations: 46,500
General government: 97,500
Households: 11,500
NPISHs: 11,000
Taxes on products : 128,000
Subsidies on products : 8,000
Other taxes less subsidies on production and imports: 58,500
Non-financial corporations: 49,000
Financial corporations: 4,000
General government: 2,500
Households: -1,500
NPISHs: to be computed
Gross operating surplus/Gross mixed income
Non-financial corporations: 288,000
Financial corporations: 46,550
General government: 25,700
Households: 154,500
NPISHs: 2,750
Compensation of employees from the rest of the world:
Households: 1,145,000
Compensation of employees to the rest of the world: 4,750
Property income from the rest of the world
Non-financial corporations: 97,850
Financial corporations: 194,500
General government: 23,500
Households: 132,300
NPISHs: 8,530
Property income to the rest of the world
Non-financial corporations: 143,400
Financial corporations: 186,450
General government: 42,370
Households: 39,450
NPISHs: 5,550
Required: Using the data above provided, present the Generation of Income Account and the Allocation of Primary Income Account of the Nation.
Generation of Income Account:
Compensation of employees:
Non-financial corporations: 980,000
Financial corporations: 46,500
General government: 97,500
Households: 11,500
NPISHs: 11,000
Gross operating surplus/Gross mixed income:
Non-financial corporations: 288,000
Financial corporations: 46,550
General government: 25,700
Households: 154,500
NPISHs: 2,750
Taxes on products:
128,000
Subsidies on products:
8,000
Other taxes less subsidies on production and imports:
58,500
Property income from the rest of the world:
Non-financial corporations: 97,850
Financial corporations: 194,500
General government: 23,500
Households: 132,300
NPISHs: 8,530
Total Generation of Income:
= Compensation of employees + Gross operating surplus/Gross mixed income + Taxes on products - Subsidies on products + Other taxes less subsidies on production and imports + Property income from the rest of the world
= (980,000 + 46,500 + 97,500 + 11,500 + 11,000) + (288,000 + 46,550 + 25,700 + 154,500 + 2,750) + 128,000 - 8,000 + 58,500 + (97,850 + 194,500 + 23,500 + 132,300 + 8,530)
= 1,233,500 + 517,500 + 128,000 - 8,000 + 58,500 + 456,680
= 2,386,180
Allocation of Primary Income Account:
Compensation of employees received from the rest of the world:
Households: 1,145,000
Compensation of employees paid to the rest of the world:
4,750
Property income to the rest of the world:
Non-financial corporations: 143,400
Financial corporations: 186,450
General government: 42,370
Households: 39,450
NPISHs: 5,550
Total Allocation of Primary Income:
= Compensation of employees received from the rest of the world + Compensation of employees paid to the rest of the world + Property income to the rest of the world
= 1,145,000 + 4,750 + (143,400 + 186,450 + 42,370 + 39,450 + 5,550)
= 1,149,750 + 417,220
= 1,566,970
Therefore, the Generation of Income Account of the nation is 2,386,180 and the Allocation of Primary Income Account is 1,566,970.
To present the Generation of Income Account and the Allocation of Primary Income Account of the Nation, we will use the provided data.
Generation of Income Account:
1. Compensation of employees:
- Non-financial corporations: 980,000
- Financial corporations: 46,500
- General government: 97,500
- Households: 11,500
- NPISHs: 11,000
2. Taxes on products: 128,000
3. Subsidies on products: 8,000
4. Other taxes less subsidies on production and imports: 58,500
- Non-financial corporations: 49,000
- Financial corporations: 4,000
- General government: 2,500
- Households: -1,500
- NPISHs: to be computed
5. Gross operating surplus/Gross mixed income:
- Non-financial corporations: 288,000
- Financial corporations: 46,550
- General government: 25,700
- Households: 154,500
- NPISHs: 2,750
6. Compensation of employees from the rest of the world:
- Households: 1,145,000
7. Property income from the rest of the world:
- Non-financial corporations: 97,850
- Financial corporations: 194,500
- General government: 23,500
- Households: 132,300
- NPISHs: 8,530
Allocation of Primary Income Account:
1. Compensation of employees:
- Non-financial corporations: 980,000
- Financial corporations: 46,500
- General government: 97,500
- Households: 11,500
- NPISHs: 11,000
- Rest of the world: 4,750
2. Property income receivable:
- Non-financial corporations: 97,850
- Financial corporations: 194,500
- General government: 23,500
- Households: 132,300
- NPISHs: 8,530
- Rest of the world: to be computed
3. Taxes on production and imports:
- Non-financial corporations: 49,000
- Financial corporations: 4,000
- General government: 2,500
- Households: -1,500
- NPISHs: to be computed
4. Subsidies on production and imports: 8,000
Note: The NPISHs values in both accounts are to be computed.