Overview
The following picture shows the very basics of how a financial model
interprets financial rules.
As you can see (sorta) the cash flow statement links the balance sheet and
the income statement.
Depreciation (which is calculated elsewhere), appears on the income statement
and gets subtracted out on the cash flow statement. But it also shows up
on the balance sheet, where it is subtracted from the value of the asset that is
depreciating.