Last year Art charged $2,380,000 Depreciation on the Income Statement of Andrews. If early this year Art sold all its depreicable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal): Select: 1 Save Answer Increase Net Cash from operations No impact on Net Cash from operations Decrease Net Cash from operations on the Cash Flow Statement Just impact the Balance Sheet Annual Report Andrews C59559 Round: 4 Dec. 31, 2023 Art Ant 2023 Income Statement Ace Axe NA NA $41,734 $51,488 $0 $0 NA (Product Name:) Sales NA 2023 Common Total Size $157,126 100.0% $43,445 $20,458 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $9,143 $12,503 $1,079 $22,725 $8,110 $5,995 $2,230 $16,335 $12,754 $13,129 $1,943 $27,826 $11,133 $15,996 $0 $27,129 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $41,140 $47,624 $5,252 $94,016 26.2% 30.3% 3.3% 59.8% Contribution Margin $20,720 $4,123 $13,908 $24,359 $0 $0 $0 $0 $63,110 40.2% $0 $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $0 $2,380 $491 $1,400 $2,000 $693 $6,964 $4,972 $237 $1,400 $2,000 $326 $8,936 $3,480 $455 $1,400 $2,000 $666 $8,001 $2,427 $347 $1,400 $2,000 $821 $6,995 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,259 $1,531 $5,600 $8,000 $2,506 $30,896 $0 $0 $0 8.4% 1.0% 3.6% 5.1% 1.6% 19.7% $0 $0 Net Margin $13,755 ($4,813) $5,907 $17,364 $0 $0 $0 $0 $32,214 20.5% 1.0% 19.5% 0.0% 4.6% 5.2% 0.2% 9.5% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. $1,500 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $30,714 $0 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 $7,303 each product. Other: Charges not included in other categories such as Fees, Write Offs, and Taxes $8,194 TQM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing $304 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit $14,912 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 with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 30.0% sharing 20.0% 10.0% 0.0%