Cash flow statement is not helpful in:

The correct answer is: B. Projecting the profits of the business in the long run

A cash flow statement is a financial statement that shows how much cash a company has coming in and going out over a period of time. It is not a profit and loss statement, which shows how much revenue a company has earned and how much expenses it has incurred. Therefore, a cash flow statement cannot be used to project the profits of a business in the long run.

A cash flow statement can be used to:

• Evaluate the cash position of a firm.
• Determine the sources and uses of cash.
• Identify the causes of cash shortages or surpluses.
• Plan for future cash needs.
• Make investment decisions.
• Analyze the financial performance of a company.

Here is a brief explanation of

• Option A: Planning the repayment of loans and replacement of fixed assets. A cash flow statement can be used to determine how much cash a company will need to repay loans and replace fixed assets. This information can be used to plan for future cash needs.
• Option B: Projecting the profits of the business in the long run. A cash flow statement cannot be used to project the profits of a business in the long run. This is because a cash flow statement only shows how much cash a company has coming in and going out over a period of time. It does not show how much revenue a company has earned or how much expenses it has incurred.
• Option C: Detecting the causes of poor cash position inspite of substantial profits. A cash flow statement can be used to identify the causes of cash shortages or surpluses. This information can be used to improve a company’s cash management practices.
• Option D: Evaluation of cash position of a firm. A cash flow statement is a financial statement that shows how much cash a company has coming in and going out over a period of time. It can be used to evaluate the cash position of a firm.