Final answer:
The statement is true; the Statement of Cash Flows estimates cash receipts and expenses/outflows over the next year, providing insight into a company's liquidity and financial health.
Step-by-step explanation:
The statement is true. The Statement of Cash Flows (SCF) is a financial report that estimates cash receipts and expenses/outflows typically over the course of the next fiscal year. This statement provides an overview of how much cash the company generates and spends, and it helps to give investors and management an idea of the company's liquidity and financial health. By analyzing the SCF, stakeholders can assess the firm's ability to generate cash from its operations, make good on its financial obligations, and fund its investments.