**Basic Theory:**

An
arithmetic circuit is a logic circuit that performs basic arithmetic operations
like addition, subtraction, increment, decrement and transfer operations using
a single combinational circuit. It uses multiplexers and full adders to do so.
The selection bits, along with an additional input at 2 and 3 input positions
of the multiplexer, determine the type of operation to be done on the input
data. This is further clarified by the function table below. As usual, a 4-bit
arithmetic circuit works with 4-bit data.

**Function Table for Arithmetic Circuit:**

**Circuit Diagram:**

**Reference:**

Mano,
M. (n.d), Register Transfer and Micro-operations: Arithmetic Circuit,

*Computer System Architecture (3*, pp. 106-108^{rd}Edition)
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