FIN621 GDB

For your convenience, we are quoting here the best comments of one student:

No, net income doesn't show an amount in cash that the owner can withdraw from the business. By itself, the income statement is an inadequate measure of cash flow because it contains several common non-cash flow items. Non-cash items on an income statement are not derived from a cash flow. Net income represents the final net earnings result of the business on an accounting basis, not necessarily a cash basis. Therefore, net income statement does not reflect how much owner can withdraw from the business at any time.

While the best comments posted by another student are given below for your guidance:

No, the net income represents the income that relates to the intervening accounting period. It includes many items that are not purely cash based. For example all the sales might not be in the form of the cash. Like wise the depreciation is not a cash expense for the period.
Thus it’s not unusual that a company may show high profits in net income but may suffer shortage of cash in hand