What is the difference between Cash on the Balance Sheet and Retained Earnings? To my understanding, a company that is growing wants to reinvest its earnings, but you cant take money out of retained Earnings to do so? So is Cash on the Balance sheet basically the Cash you can actually use to reinvest from your net income?
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Retained earnings is basically a cumulative net income/loss figure part of the equity section of the Liabilities/Equity side balance sheet, cash is on the Asset side of the balance sheet. Think of the L/E side of the Balance Sheet as "how you financed the stuff" on the Asset side of the Balance Sheet. In very basic terms Cash is basically the unused portion of any money you have received, be it through Retained Earnings, Capital Investment or Debt Investment.
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