DarienHacker

Having read my explanation again I didn′t address as to whether you have more cash due to the depreciation entry. In essence, you would have more cash when reporting a depreciation entry.

EBITDA = 100 EBITDA = 100
Depreciation = 50 EBIT = 100
EBIT = 50 Tax @ 50% = 50
Tax @ 50% = 25 EAT = 50
EAT = 25

CF = 25 + 50 = 75 CF = 50

The reason why you have a higher cash flow when reporting a depreciation entry is because ultimately you pay less tax due to having more expenses. The 25 difference between cash flows is the difference between how how much tax you pay when you report depreciation and when you don′t report a depreciation entry.