The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 60,000 $ 50,000 $ 101,000 Cost of goods sold 32,500 23,500 74,000 Depreciation expense 11,500 1,500 27,500 Salaries and wages expense 4,500 12,500 7,500 Net income (loss) 11,500 12,500 (8,000 ) Accounts receivable increase (decrease) (1,000 ) 3,500 2,500 Inventory increase (decrease) 1,500 0 (2,500 ) Accounts payable increase (decrease) 0 2,000 (1,000 ) Salaries and wages payable increase (decrease) 1,250 (1,500 ) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces