Last year Apple charged $4,906,667 Depreciation on the Income Statement of Andrews. If early this year Apple purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):

Select: 1

	Increase Net Cash from operations
	Just impact the Balance Sheet
	No impact on Net Cash from operations
	Decrease Net Cash from operations on the Cash Flow Statement

2019 Income Statement 2019 Common Product Name: Alan Agape Abby 2 Total Size $64,136 $47,084 $43,030 $32,288 $39,721 $39,846 $266,105 100.0% aleS Variable costs: Direct Labor $3,830 Direct Material $23,298 Inventory Carry $0 $12,449 $9,068 $2,539 $14,219 $13,436 $0 $0 $55,541 20.9% $16,192 $15,339 $11,802 $15,454 $14,885 $0 $0 $96,972 36.4% $640 $0 $35 $0 $0 $0 $685 0.3% $27,128 $29,282 $24,407 $14,377 $29,674 $28,330 $0 $0 $153,198 Total Variable 57.6% Contribution S37,008 $17,803 s18,623 $17,912 S10,047 $11,515 so $112,907 $0 42.4% Margin Period Costs: $4,907 $2,267 $2,200 $3,987 $1,813 $1,700 $0 $0 $16,873 6.3% Depreciation $8 $502 $247 $809 $24 $12 $0 $0 $1,602 0.6% SG&A: R&D Promotions $1,400 $1,400 $1,400 $1,400 $1,600 $1,600 $0 $0 $8,800 3.3% $3,000 $2,250 $2,250 $3,000 $2,250 $2,250 Sales $0 $0 $15,000 5.6% Admin $675 $617 $463 $570 $571 $0 $0 $3,817 1.4% Total Period $10,235 $7,094 $6,715 $9,659 $6,257 $6,133 $0 $0 $46,092 17.3% $26,773 $10,709 $11,908 $8,253 $3,790 $5,382 $0 $0 $66,815 Net Margin 25.1% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the $1,850 0.7% Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. $64,965 24.4% Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $0 Short Term Interest 0.0% department expenditures for each product. Admin: Administration overhead is estimated at 1.5% $10,199 3.8% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest $19,168 Taxes 7.2% each product. Other: Charges not included in other categories such as Fees, Write Offs, and $712 Profit Sharing 0.3% TQM. The fees include money paid to investment bankers and brokerage firms to issue new $34,886 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit 13.1% might experience when you sell capacity or liquidate inventory as the result of eliminating a Variable Margins production line. If the amount appears as a negative amount, then you actually made money on 2008 Andrews the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 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 outstanding bonds. Taxes Income tax based upon a 35% tax rate. Profit Sharing: Profits shared 40.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 20.0% sharing 0.09%