On its 12131/15 balance sheet, Nashua Inc. showed $333 million of retained earnings, which was also the amount shown in the 12/31/14 balance sheet. Assume that the firm did not repurchase any shares. Which statement is most likely true? The firm had zero net income during 2015 but still paid dividends. The firm had negative net income during 2015 but still paid dividends. The firm had positive net income during 2015, but it paid all of it out as dividends. The firm paid out half of its 2015 positive net income as dividends. The company had positive net income in 2015 paid no dividends. Which statement is most true? Given the same sales, operating costs, interest rates, and tax rates, greater depreciation will lead to a greater tax bill. Operating income is not affected by interest paid or taxes paid. The bottom line of an income statement is the firm's cash flow. Depreciation reduces EBIT, therefore it will reduce the firm's cash flow. Depreciation is not a cash expense, so it does not have any effect on net income