Exercise 10-5 Identifying the effect of product versus selling, general, and administrative costs on financial statements LO 10-3 Required Driscoll Industries recognized the annual cost of depreciation on its December 31, 2018, financial statements. Using the following horizontal financial statements model, indicate how this event affected the company's financial statements under the following two assumptions: (1) the depreciation was on office furniture and (2) the depreciation was on manufacturing equipment. Indicate whether the event increases (0), decreases (D), or has no effect (leave the cell blank) on each element of the financial statements. Show accumulated depreciation as a decrease in the book value of the appropriate asset account. (Not every cell will require entry.) Equity Income Statement Event No. Assets Manuf. + Inventory + Equip Cash + Office Furn. Com. Stk. + Ret. Ear. Rev. Exp. = Net Inc. Cash Flow 1 + + ++ ++ 2. + + + = +