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Income Statement - Depreciation

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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)

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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.