At the Beginning of the Year,London,Inc APrepare an Environmental Financial Statement for the Year

At the beginning of the year,London,Inc.initiated an environmental cost reduction program.To help assess the impact of the environmental cost reduction improvement program,the following data was collected for the current and preceding year:
$\begin{array}{lr}& \underline{\text { Preceding Year }}\\\text { Operating costs } & \$ 2,000,000 \\\text { Cost reduction, contaminants (ongoing) } & 150,000 \\\text { Designing products } & 8,000 \\\text { Auditing environmental risks } & 10,000 \\\text { Recycling scrap } & 50,000 \\\text { Recycling income } & 100,000 \\\text { Restoring land to natural state } & 60,000 \\\text { Operating pollution control equipment } & 50,000 \\\text { Packaging cost reductions (current year) } & 120,000 \\\text { Testing for contamination } & 80,000\end{array}$
a.Prepare an environmental financial statement for the year.