Calculate example sentences

Can you calculate the profit per shirt for the garment exporter? A chain of markets links the producer of cotton to the buyer at the supermarket.We have to deduct them from NNP evaluated at market prices in order to calculate that part of NNP which actually accrues to the factors of production.When the number is calculated by referring to two accounting numbers derived from the financial statements, it is termed as accounting ratio.For example, ratio of gross profit to sales known as gross profit ratio is calculated using both figureures from the income statement.A ratio calculated for unrelated figureures would essentially be a meaningless exercise.The percentage thus calculated can be easily compared with the results corresponding percentages of the previous year or of some other firms, as the numbers are brought to common base.For example, ratio of current assets to current liabilities known as current ratio is calculated using both figureures from balance sheet.Within the present framework, if we take different values of the marginal propensity to consume and calculate the values of the two multipliers, we find that the tax multiplier is always one less in absolute value than the government expenditure multiplier.Productivity is calculated by comparing the value of outputs with the value of inputs.Ratios which are calculated to determine the long-term solvency of business are known as solvency ratios.In product method we calculate the aggregate annual value of goods and services produced (if a year is the unit of time).So we can calculate the aggregate value of goods and services produced in the economy by any of the three methods (a) measuring the aggregate value of factor payments (income method) (b) measuring the aggregate value of goods and services produced by the firms (product method) (c) measuring the aggregate value of spending received by the firms (expenditure method).This method involves the application of a pre-determined proportion/percentage of the book value of the asset at the beginning of every accounting period, so as to calculate the amount of depreciation.Since prices of goods and services may vary, we have discussed how to calculate the three important price indices (GDP deflator, CPI, WPI).For example, ratio of credit sales to debtors and bills receivable known as debtor turnover ratio is calculated using one figureure from income statement (credit sales) and another figureure from balance sheet (debtors and bills receivable).

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