-Given the Data in Table 9

question 365

Multiple Choice

$$\begin{array}{l}\begin{array} { c c c } \hline \text { Wasle water } & \text { Firm A } & \text { Firm B } \\\hline 2,000 & \$ 100 & \$ 120 \\1,000 & \$ 103 & \$ 135 \\0 & \$ 115 & \$ 155 \\\hline\end{array}\\\text { Table } 9.5\end{array}$$

-Given the data in Table 9.5, if firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:

• A)would increase by $12.
• B)would decrease by $12.
• C)would not change.
• D)cannot be calculated from the information above.

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Definitions:

Operating Activities

Activities related to the core business functions of a company, including production, sales, and delivery of its products or services.

Net Income

The final earnings of a business once all costs and taxes are removed from the overall revenue.

Indirect Method

A way of reporting cash flows from operating activities in the statement of cash flows by adjusting net income for changes in balance sheet accounts.

Operating Activities

Activities that relate directly to the running of a business for profit, including production, sales, and distribution.