Which of the following statements is CORRECT? a. Retained earnings as reported o

Question

Which of the following statements is CORRECT?
   a. Retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers.   
   b. After-tax operating income is calculated as EBIT(1 - T) + Depreciation.   
   c. Two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition.   
   d. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations.   
   e. If a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow.

please give me why

Explanation / Answer

Which of the following statements is CORRECT?

d. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations.    

Note :

Free cash flow (FCF) = NOPAT - Change in Working Capital - Capital Expenditure

Free cash flow is the fund or cash avilable for interest and dividend

After-tax operating income is calculated as EBIT(1 - T)

It doesnot been happening that if Income is in  in accordance with generally accepted accounting principles that net income equal to Free cash flow

Retained earnings as reported on the balance sheet represent net income retained which may be cash or any other asset

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