Henry James Ltd,a large retailing business,reports the following (all in $ millions):
$$\begin{array} { l r }
\text { Cost of goods sold } & \$ 52.0 \
\text { Cost of services purchased } & 16.0 \
\text { Salaries and wages } & 12.0 \
\text { Interest expense } & 0.2 \
\text { Depreciation and amortisation } & 2.0 \
\text { Dividends paid } & 1.2 \
\text { Sales revenue } & 90.0
\end{array}$$
The 'gross value added' for this business is:
A) $6.4
B) $10.0
C) $22.0
D) $38.0

Question

Henry James Ltd,a large retailing business,reports the following (all in $ millions):
$$\begin{array} { l r } 
\text { Cost of goods sold } & \$ 52.0 \
\text { Cost of services purchased } & 16.0 \
\text { Salaries and wages } & 12.0 \
\text { Interest expense } & 0.2 \
\text { Depreciation and amortisation } & 2.0 \
\text { Dividends paid } & 1.2 \
\text { Sales revenue } & 90.0
\end{array}$$
The 'gross value added' for this business is:
A) $6.4
B) $10.0
C) $22.0
D) $38.0

Quizplus · Accepted Answer

Gross value added is calculated as Sales revenue minus Cost of goods sold and Cost of services purchased: $90.0 - $52.0 - $16.0 = $22.0 million.

Henry James Ltd,a Large Retailing Business,reports the Following (All in