I've been reviewing some of the preliminary financial data from a variety of our reports. I noticed that we are charged $$2,116,000$ in depreciation for

Abby. From discussions with our board, we predict an increase in depreciation for Abby.

I$\text{'}$d like you to communicate the primary effect of this increase to Louis, as well as those on the leadership team in operations. I$\text{'}$m sure they will be

interested in learning what $($if any$)$ impact this will have on our financial statement. You can reply directly to Louis with your initial response.

Thank you,

Ronald

Ronald Jefferson

Board Member, Accounting & Finance $|$ Andrews Corporation

Email Louis to inform him that the predicted depreciation increase will decrease net cash from operations on the cash

flow statement.

Email Louis to inform him that the predicted depreciation increase will only impact the balance sheet.

Email Louis to inform him that the predicted depreciation increase will have no impact on the net cash from operations

because depreciation appears in both the cash flow and income statements.

Email Louis to inform him that the predicted depreciation increase will increase net cash from operations, which he will

see on the cash flow statement.