Since investors use net income to value the firm,cash flow becomes a secondary consideration simply because cash is for operation only.

This statement is false. While net income is an important factor in valuing a firm, cash flow is also a critical consideration for investors. Cash flow allows a company to fund its operations, invest in growth, pay dividends, and pay off debt. It also provides a more accurate picture of a company's financial health than net income alone, since it reflects the actual cash coming in and going out of the business. Therefore, cash flow is not just for operations, but is a fundamental aspect of a company's financial performance.