One writer stated. Depreciation expense is a firm’s chief source of cash for growth. A reader criticized this statement by replying. The fact remains that if companies had elected, in any year, to charge oft $10 million more depreciation than they did charge off, they would not thereby have added one dime to the total of their cash available for expanding plants or for increasing inventories or receivables. Therefore, to speak of depreciation expense as a source of cash is incorrect and misleading.” Comment on these statements, taking into account income tax effects.