Investors and management use the statement of cash flows to evaluate a firm's profitability.

Name: Investors and management use the statement of cash flows to evaluate a firm's profitability.
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The statement of cash flows is used to assess a firm's liquidity and ability to generate cash, not its profitability. Investors and management may use other financial statements, such as the income statement and balance sheet, to evaluate profitability.

Investors and Management Use the Statement of Cash Flows to Evaluate