Last year Abby charged $4,369,333 Depreciation on the Income Statement of Andrews. If early this year Abby sold all its depreicable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal):

Just impact the Balance Sheet.

-Decrease Net Cash from operations on the Cash Flow Statement.

-No impact on Net Cash from operations.

-Increase Net Cash from operations.

Ate 2023 Income Statement Apple $38,666 $43,369 $0 NA NA NA Abby $27,672 NA Alan $43,310 2023 Common Total Size $153,016 100.0% $0 $0 $0 (Product Name:) Sales Jariable Costs: Direct Labor Direct Material nventory Carry Total Variable $0 $0 $13,105 $9,533 $175 $22,813 $15,777 $16,455 $0 $32,231 $9,038 $13,220 $0 $22,258 $10,131 $14,099 $0 $24,230 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $48,050 $53,307 $175 $101,532 31.4% 34.8% 0.1% 66.4% $0 $0 Contribution vargin $4,859 $11,078 $16,408 $19,139 $0 $0 $0 $0 $51,484 33.6% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,369 $371 $1,500 $2,500 $355 $9,096 $3,260 $477 $1,500 $2,500 $556 $8,293 $2,038 $484 $1,500 $2,500 $496 $7,019 $1,999 $245 $1,500 $2,500 $557 $6,801 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,667 $1,578 $6,000 $10,000 $1,964 $31,209 7.6% 1.0% 3.9% 6.5% 1.3% 20.4% et Margin ($4,237) $2,785 $9,390 $12,337 $0 $0 $0 $0 $20,275 13.3% $0 $0 0.0% 13.3% 0.0% 6.2% 2.5% 0.1% 4.5% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Other Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $20,275 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest $9,425 each product. Other: Charges not included in other categories such as Fees, Write Offs, and Taxes $3,798 TOM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing $141 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit $6,912 might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Variable Margins the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 2008 Andrews Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on 40.0% outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared 30.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. 20.0% 10.0% 0.0% Profit History Market Share History 30% S20,000 510,000 SO -S10,000 -S20,000 20% 10% 0% 2015 | 2017 2019 2021 2023 2015 2017 2019 2021 2023 ROE History Asset Turnover History 1.0 20% | 0% -20% -406 0.5 0.0 2015 | 2017 2019 2021 2023 2015 2017 - 2019 2021 2023 ROS History ROA History 1098 20.0% 10.0% 0.0% -10.0% 5 0% -10% 2015 | 2017 2019 2021 2023 2015 2017 2019 2021 2023