The correct answer is C. Cash flow statement is useful for financial planning, both short-term and long-term.
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 used to track a company’s liquidity, which is its ability to meet its short-term financial obligations.
A cash flow statement can also be used to project a company’s future cash flows, which can be helpful in financial planning. For example, a company can use its cash flow statement to forecast its cash needs for the next year and make sure it has enough money on hand to meet those needs.
In addition, a cash flow statement can be used to analyze a company’s financial performance. By comparing the company’s actual cash flows to its budgeted cash flows, a company can identify areas where it is overspending or underspending. This information can be used to make changes to the company’s budget or to improve its financial management.
Overall, a cash flow statement is a valuable tool for financial planning, both short-term and long-term. It can be used to track a company’s liquidity, project its future cash flows, and analyze its financial performance.