Question

The following environmental cost reports for 2013, 2014, and 2015 (year end December 31) are for the Communications Products Division of Kartel, a telecommunications company. In 2011, Kartel committed itself to a continuous environmental improvement program, which was implemented throughout the company.
At the beginning of 2015, Kartel began a new program of recycling nonhazardous scrap. The effort produced recycling income totaling $25,000. The marketing vice president and the environmental manager estimated that sales revenue had increased by $200,000 per year since 2013 because of an improved public image relative to environmental performance. The company’s Finance Department also estimated that Kartel saved $80,000 in 2015 because of reduced finance and insurance costs, all attributable to improved environmental performance. All reductions in environmental costs from 2013 to 2015 are attributable to improvement efforts. Furthermore, any reductions represent ongoing savings.
Required:
1. Prepare an environmental financial statement for 2015 (for the Products Division). In the cost section, classify environmental costs by category (prevention, detection, etc.).
2. Evaluate the changes in environmental performance.


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  • CreatedSeptember 01, 2015
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