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(10 pts) Knowing that the fiscal period of the firm is quickly coming to an end, managers of Some & Mirrors, Inc. are extremely concerned about the year's profit. Net income of existing stores is down by 10%, compared to the same time last year. Brian, one of the senior managers, relying on the latest business report in the newspaper this week, informs others at a meeting that, "Since net income is down, the company's stock will be adversely affected and our bonuses will be negatively impaired." Not convinced of Brian's explanation, Shana rebuts, "The lower income is because of the increase in depreciation expense from the new equipment put in service this year, therefore, it will not adversely affect cash flows nor the stock price. This is all to do about nothing." Based on sound economic theory, which manager's statement do you support, and why? (Be sure to use sound financial theory discussed in class and in chapter one of the textbook.)