The following environmental cost reports for 2011, 2012, and 2013 (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 2013, 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 2011 because of an improved public image relative to environmental performance. The company's Finance Department also estimated that Kartel saved $80,000 in 2013 because of reduced finance and insurance costs, all attributable to improved environmental performance. All reductions in environmental costs from 2011 to 2013 are attributable to improvement efforts. Furthermore, any reductions represent ongoing savings.
Required:
1. Prepare an environmental financial statement for 2013 (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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Environmental Activitv 2011 2012 2013 Disposing hazardous Measuring contaminant releases Releasing air contaminants Producing scrap (nonhazardous) Operating pollution equipment Designing processes and products Using energy Training employees (environmental) Remediation (clea nup) Inspecting processes S200,000 10,000 500,000 175,000 260,000 50,000 180,000 10,000 400,000 S150,000 100,000 400,000 150,000 200,000 300,000 162,000 20,000 300,000 100,000 S 50,000 70,000 250,000 125,000 130,000 100,000 144,000 40,000 190,000 80,000 wa ste