Last year Ace charged $2,256,000 Depreciation on the Income Statement of Andrews. If early this year Ace purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):

Select 1

No impact on Net Cash from operations

Decrease Net Cash from operations on the Cash Flow Statement

Just impact the Balance Sheet

Increase Net Cash from operations

2026 Income Statement Product Name Ace Awe Art Ant NA NA NA NA Total Common Size Sales $66,710 $71,928 $34,986 $51,657 $0 $0 $0 $0 $225,282 100% Variable Costs: Direct Labor $16,600 $16,727 $8,685 $13,336 $0 $0 $0 $0 $55,348 24.5% Direct Material $22,877 $24,368 $10,843 $17,646 $0 $0 $0 $0 $75,735 33.6% Inventory Carry $704 $338 $871 $0 $0 $0 $0 $0 $1,913 0.8% Total Variable $40,181 $41,434 $20,399 $30,982 $0 $0 $0 $0 $132,996 59% Contribution Margin $26,529 $30,494 $14,587 $20,676 $0 $0 $0 $0 $92,286 41 \"/5 Period Costs: Depreciation $2,256 $2,278 $2,465 $909 $0 $0 $0 $0 $7,908 3.5% R&D $514 $514 $404 $480 $0 $0 $0 $0 $1,912 0.8% Promotions $1,500 $1,500 $2,000 $1,500 $0 $0 $0 $0 $6,500 2.9% Sales $2,500 $2,500 $3,000 $2,500 $0 $0 $0 $0 $10,500 4.7% Admin $766 $826 $402 $593 $0 $0 $0 $0 $2,587 1.1% Total Period $7,536 $7,618 $8,271 $5,982 $0 $0 $0 $0 $29,407 13.1% Net Margin $18,993 $22,876 $6,317 $14,693 $0 $0 $0 $0 $62,879 27.9% D Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred Other $3794 17% to produce the product that was sold. Inventory Carry Cost: the cost to carry EBIT $59,085 26.2% unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R8D Costs: R&D department expenditures for each Short Term Interest $0 0% product. Admin:Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Taxes $17,422 7.7% Fees, Write Offs, and TQM. The fees include money paid to investment bankers Long Term Interest $9,306 4.1% Prot Sharing $647 0.3% and brokerage rms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you Net Prot $31_709 14_1% ' ' uidate inventory as the result of eliminating a production line. If as a negative amount, then you actually made money on the