Question

Currently Ark is charged $3,144,267 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this

Answer 1

Answer:

C)Increase Net Cash from Operations on the Cash Flow Statement

Explanation:

If there is an increase in depreciation so this declines the net profit as the depreciation is an expense and shown in the debit side of the income statement. Ultimately it fall the earnings of the company. In the cash flow statement, this depreciation expense is added back to the net profit to determine the net cash flow from operating activities also it is a non cash expense

Therefore the option C is correct