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Which of the following best describes the importance of net income to investors and other company outsiders, as discussed in class? Net income is among

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Which of the following best describes the importance of net income to investors and other company outsiders, as discussed in class? Net income is among the best metrics at predicting a company's future cash flows, and therefore the company's value to current and potential investors. Net income indicates how much cash the company generated during the period, and therefore helps investors understand how much new cash is available for the company to spend. Net income is the bottom line of the balance sheet and helps investors understand the company's overall financial position. Net income is less useful to investors than operating cash flows, because net income only includes accrual adjustments that are not predictive of future cash flows

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