Accrual versus cash basis of accounting

PepsiCo, Inc. $($PEP$)$ is a food and beverage company with a variety of brands, including Frito$-$Lay, Gatorade, Pepsi$-$Cola, and Tropicana. On recent financial statements, Pepsi reported net income of $$7,679$ million and $$2,710$ million of depreciation expense. If Pepsi had used the cash basis of accounting, its net income would be approximately $$11,616$ million. Why would Pepsi's net income be higher if it had used the cash basis?

Because depreciation expense $$ a cash payment, it is $$

$$ in arriving at Pepsi's estimated cash$-$basis net income of $$11,616$ million. As a result, Pepsi's accrual net income of $$7,679$ million is $$ its estimated cash$-$basis net income of $$11,616$ million. A majority of this difference of $ $$ million $$ depreciation expense of $$2,710$ million.