There are just two things to do with net income. These are...

Group of answer choices

$(1)$ reinvest these profits in the company and $(2)$ pay dividends to shareholders. Most firms do some combination of this.

$(1)$ reinvest these profits in the company and $(2)$ invest cash in short$-$term or long$-$term investments to earn interest income.

$(1)$ reinvest these profits in the company and $(2)$ place any remaining net income in retained earning