Based on the given information the correct answer is:
No impact on Net Cash from operations.
Impact on Net Cash from operations.
"If nothing else changes, the impact on Andrews's financial statements would be like this: "
Selling old equipment for less money than it's worth does not change the amount of cash we make from our regular business activities. Depreciation is an expense that doesn't involve actual cash, and selling the equipment wouldn't bring in or spend any cash related to operations.
The choice to reduce the amount of money earned from everyday business activities on the statement of cash flows is wrong. This is because selling the equipment that is fully paid off does not bring in or take out any cash that is related to the day-to-day operations of the business. So, it would not affect the amount of money coming in from regular business activities on the Cash Flow Statement.
Selling the equipment would affect both the income statement and the balance sheet, so this choice is not correct. This would make the income statement show less money and make the balance sheet show the equipment as worth less.
Boost the amount of money generated from the day-to-day activities: This choice is wrong because, as said before, selling the equipment that has already been paid off doesn't bring in or spend any money related to operations. So, it would not make more money from regular business activities.