Share
Explore BrainMass

Income Statement - Depreciation

Currently Attic is charged $3,164,000 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this?:
- Increase Net Cash from Operations on the Cash Flow Statement.
- Just impact the Balance Sheet.
- 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 Cash Flow Statement.

(Please see the attached file for the balance sheet and the income statement)

Attachments

Solution Preview

(Please see the attached file for the complete solution)
On the Income Statement: The total period costs will increase due to the raise in depreciation. Therefore, the Net Margin will decrease.

On the Cash Flows from Operating Activities: With the depreciation increasing, the net cash from operations ...

Solution Summary

This solution provides an example of depreciation and how it affects financial statements. The solution analyzes a specific problem and provides the answer to various questions.

$2.19