Currently Abby is charged $4,569,333 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews this will do which of the following? Select : 1 Save Answer Decrease Net Cash from Operations on the Cash Flow Statement. Increase Net Cash from Operations on the Cash Flow Statement. Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement. Decrease Net Cash from Operations on the Income Statement.
Currently Abby is charged $4,569,333 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews this will do which of the following? Select : 1 Save Answer Decrease Net Cash from Operations on the Cash Flow Statement. Increase Net Cash from Operations on the Cash Flow Statement. Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement. Decrease Net Cash from Operations on the Income Statement.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Currently Abby is charged $4,569,333
Select : 1
Save Answer
Decrease Net Cash from Operations on the Cash Flow Statement.
Increase Net Cash from Operations on the Cash Flow Statement.
Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement.
Decrease Net Cash from Operations on the Income Statement.
Transcribed Image Text:Product Name
Sales
Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable
Contribution Margin
Period Costs:
Depreciation
R&D
Promotions
Sales
Admin
Total Period
Net Margin
Abby
Alan
$29,884 $48,102
$2,199
$10,516
$731
$270
$13,447 $21,125 $23,779
$16,438 $26,977 $27,227
$4,569
$852
$1,500
$1,500
$386
2026 Income Statement
Apple Ate
$51,006
$8,807
$7,630
$5,205
$2,894
$17,960 $18,482
$92
$6,011
$781
$1,500
$1,500
$622
$659
$10,414
$8,466
$16,563 $18,761
$4,257
$550
$1,500
$1,500
$51,237
$6,005
$17,678
$336
$24,019
$27,218
$3,819
$567
$1,500
$1,500
$662
$8,049
$19,170
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. Depreciation: Calculated on
straight-line 15-year depreciation of plant value. R&D Costs: R&D
department expenditures for each 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 Fees, Write
Offs, and TQM. The fees include money paid to investment bankers and
brokerage firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT:
erest and Taxes. Short Term Interest: Interest
COOKIE SETTINGS
ast vear's current debt. includina short term debt. Iona
Art
$11,571
$3,879
$3,220
$0
$7,099
$4,472
$1,020
$746
$2,000
$2,000
$150
$5,916
($1,444)
Other
Profit Sharing
Net Profit
ΝΑ ΝΑ ΝΑ
60%
$0
$0
EBIT
Short Term Interest
Long Term Interest
Taxes
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0
$0 $0
$0 $0 $0
$0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0
$0 $0 $0
$0 $0 $0
$0 $0
Total
$19,676
$3,496
$8,000
$0 $0 $8,000
$2,480
$41,652
$60,681
$0
$191,801
$20,182
$67,857
$1,430
$89,468
$102,333
$6,084
$54,597
$1,280
$17,374
$12,580
$467
$22,896
Common Size
100%
10.5%
35.4%
0.7%
46.6%
53.4%
10.3%
1.8%
4.2%
4.2%
1.3%
21.7%
31.6%
3.2%
28.5%
0.7%
9.1%
6.6%
0.2%
11.9%
Variables Margins
▶
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