its retained earnings is the actual cash that the irm has generated throuth operations ns the cash that has been paid out to stockholders as dividends. If the firm has sufficient retained earnings,it can purchase assets and pay for them with cash from retained earni True False 4 pt Question 15 The income statement shows the difference between a firm's income and its costs-Le, its profits-during a specified period of time. However, not all reported income comes in the form of cash, and reported costs likewise may not he consistent with cash outlays. Therefore, there may be a substantial difference between a firm's reported profnts and its actual cash flow for the same period. True False