In this video, we walk you through how an increase in Depreciation affects the 3 financial statements and highlight the specific line items that change on the Income Statement, Balance Sheet, and Cash Flow Statement. More details in http://breakingintowallstreet.com/biw...
We also go through the *intuition* behind these changes - namely, how Depreciation affects a company's taxes but is not a true cash expense - and why even though this is a somewhat artificial scenario, it's still a very common question that you need to understand in investment banking and other finance interviews.
You can grab the Excel file for yourself by clicking on the link at the top of this description.
