Gross income means the total annual income of the company, expressed in monetary terms, and received as a result of production and sales of products. Thus, it is gross income that can characterize the final result of a firm's activities.
Instructions
Step 1
Determine the amount of gross income as the difference between the cash proceeds received from the sale of goods and the material costs for their production.
Step 2
Summarize the total value of the products produced in the year for the year, or all the added value. In turn, value added is the amount added to the total value of products produced at each subsequent production stage. In addition, at each production stage, a certain proportion of equipment depreciation is added, as well as the cost of rent.
Step 3
Calculate the size of the firm's gross income per unit of production. It depends on the number of sold results of production (goods) and on the price of each specific type of product. In this case, the process of generating gross income for one type of product can be calculated using the formula:
D = CxQ, where
D - indicator of the income of the enterprise;
C - the value of the selling price of the product;
Q is the amount of products sold.
Step 4
Calculate the sum of all indicators included in the gross income: total income received from the sale of goods, including service and auxiliary industries; income from securities; income from various (insurance, banking) operations carried out to provide financial services.
Step 5
Calculate adjusted gross income, which is gross income less value added taxes, excise tax, and other receipts.
Step 6
Calculate gross income using the formula:
C + lg + G + NX, where
C is an indicator of consumer spending;
lg is the amount of the company's investments;
G - purchases of goods;
NX is a net export.
Thus, the costs listed in this case are GDP and reflect the market estimate of production for the year.
