A manufacturer of plastic bottles for the medical market has purchased a new compression blow molder for its bottle production plant. Which of the descriptions below correctly identifies some of the relevant effects of this purchase on the firms GAAP financial statements?

a. It will be depreciated over time on the income statement and will increase cash flows as a capital expenditure on the statement of cash flows.

b. It will be depreciated over time on the income statement which will decrease the Net Book Value of assets on the Balance Sheet over time.

c. It will be depreciated over time on the income statement and therefore not be recorded separately on the statement of cash flows.