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Depreciation Through Three Statements

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Your question is Depreciation Through Three Statements. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Scenario

You're discussing a basic accounting and business performance question in an interview for a research role. The interviewer wants to see whether you can connect an accounting change to profitability, cash flow, and balance sheet impacts in a clean, structured way.

Question

Walk me through how a $10 increase in depreciation flows through the three financial statements.