Using the information below, calculate Cabana Co.’s Net Operating Cash Flow for 2017. It is not necessary to produce a complete Statement of Cash Flows – only Net Operating Cash Flow is required.
2016 2017
Net Income $100,000 $110,000
Accounts Receivable 80,000 90,000
Accounts Payable 15,000 20,000
Prepaid Expenses 5,000 7,000
Inventory 20,000 30,000
Unearned Revenue 5,000 1,000
PP&E 200,000 220,000
Depreciation Expense 20,000 25,000

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500