Last year, a company reported $15,500 of sales, $6,000 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had $3,500 of bonds outstanding that carry a 5.5% interest rate, and its federal-plus-state income tax rate was 21%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $500.

By how much will the depreciation change cause the firm's net after-tax income and its net cash flow to change? Note that the company uses the same depreciation calculations for tax and stockholder reporting purposes.