Why will net cash flow and net profits be different when plant, property and equipment assets are depreciated?

Responses

Depreciation is a non$-$cash operating expense that increases net profits for the current period but does not effect net cash flow until interest payments are made

Depreciation is a non$-$cash operating expense that increases net profits for the current period but does not effect net cash flow until interest payments are made

Financing will be needed to replaced fully depreciated equipment that has worn out

Financing will be needed to replaced fully depreciated equipment that has worn out

Depreciation is a non$-$cash operating expense that reduces net profits but has no effect on net cash flow

Depreciation is a non$-$cash operating expense that reduces net profits but has no effect on net cash flow

Depreciation is an asset activity that affects net cash flow but has no effect on net profits