he following items are listed in an environmental financial statement (issued as part of an environmental progress report):

Environmental benefits (savings, income, and cost avoidance):

• Ozone-depleting substances cost reductions
• Hazardous waste disposal cost reductions
• Hazardous waste material cost reductions
• Nonhazardous waste disposal cost reductions
• Nonhazardous waste material cost reductions
• Recycling income
• Energy conservation cost savings
• Packaging cost reductions

Environmental costs:

• Corporate-level administrative costs
• Auditor fees
• Environmental engineering
• Facility professionals and programs
• Packaging professionals and programs for packaging reductions
• Pollution controls: Operations and maintenance
• Pollution controls: Depreciation
• Attorney fees for cleanup claims, and notices of violations (NOVs)
• Settlements of government claims
• Waste disposal
• Environmental taxes for packaging
• Remediation/Cleanup: On-site
• Remediation/Cleanup: Off-site

In the environmental benefits section of the report, three types of benefits are listed: income, savings, and cost avoidance. Now, consider the following data for selected items for a four-year period:

Year	Engineering Design Costs			Cost of Ozone- Depleting Substances
20x2		$184,900			$3,257,000
20x3		1,435,100			2,179,700
20x4		728,200			1,451,500
20x5		93,600			364,300

The engineering design costs were incurred to redesign the production processes and products. Redesign of the product allowed the substitution of a material that produced less ozone-depleting substances. Modifications in the design of the processes also accomplished the same objective. Because of the improvements, the company was able to reduce the demand for pollution control equipment (with its attendant depreciation and operating costs) and avoid fines and litigation costs. All of the savings generated in a given year represent costs avoided for future years. The engineering costs are investments in design projects. Once the results of the project are realized, design costs can be reduced to lower levels. However, since some ongoing design activity is required for maintaining the system and improving it as needed, the environmental engineering cost will not be reduced lower than the $93,600 reported in 20x5.

Required:

1. Prepare a partial environmental financial statement, divided into benefit and cost sections for 20x3, 20x4, and 20x5.

Environmental Financial Statement (Partial)
For 20x3, 20x4 and 20x5
	20x3	20x4	20x5
Environmental benefits:
	$fill in the blank 04298803b04cfd9_2	$fill in the blank 04298803b04cfd9_3	$fill in the blank 04298803b04cfd9_4
Environmental costs:
	fill in the blank 04298803b04cfd9_6	fill in the blank 04298803b04cfd9_7	fill in the blank 04298803b04cfd9_8

2. Evaluate the outcomes. Does this result support or challenge ecoefficiency?