Use the Tables for the Question(s) Below

question 40

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko, 2010-2015
Pro Forma Balance Sheet for Ideko, 2010-2015

-The amount of net working capital for Ideko in 2012 is closest to ________.

• A) $35,195
• B) $42,420
• C) $22,170
• D) $26,420

---

Definitions:

Negative Externality

A negative externality is a cost imposed on a third party not involved in the production or consumption of a good or service, such as pollution.

Positive Externality

A beneficial effect experienced by a third party who did not choose to incur that benefit, often resulting from an individual's or firm's actions.

Corrective Tax

A tax designed to internalize externalities, effectively correcting market outcomes that might otherwise result in social inefficiency.

Command-And-Control Policies

Regulatory strategies where the government sets specific limits and controls on emissions or discharges, often requiring technology or methods to be used.