Final answer:
The bank needs financial statements in week 5 to evaluate creditworthiness and project future cash flows.
Step-by-step explanation:
Financial statements serve as a critical tool for banks to assess the creditworthiness of individuals or entities seeking loans or financial services. These documents provide historical data, enabling the bank to analyze past performance, assess risk, and understand the financial stability of the applicant. By scrutinizing income statements, balance sheets, and cash flow statements, banks can project future cash flows, identifying potential risks and ensuring the applicant's ability to meet financial obligations.
Additionally, these statements aid in evaluating the feasibility of granting loans by assessing the applicant's financial health and stability. Ignoring financial stability or focusing solely on historical data would undermine the comprehensive evaluation necessary for making informed lending decisions.
Correct Answer: C) A: Project future cash flows, B: Evaluate creditworthiness; C: Ignoring financial stability, D: Historical data