QUES TION 11 6.67 points Which of the following is NOT correct? A firm can show a large amount of retained earnings on its balance sheet yet need to borrow cash to make requred payments It a company pays more in dividends than a generates in net income, its retained eamings as reported on the balance sheet wil The retained earnings account as reported on the balance sheet shows the amount of cash that is available for paying dividends The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the decline from the previous year's balance firm's future earnings and dividends and the riskiness of those cash flows In finance, we are generally more interested in cash flows than in accounting proits Free cash flow (FCF) is calculated as after-tax operating income plus depreclation less the sum of capital expenditures and the change in net operating working capital Free cash flow is the amount of cash that could be withdrawn without harming the Srm's ability to operate and to produce future cash fows