This is a follow-up to this question: was flatness really used in this argument? (Matsumura, Theorem 7.2).
The author of the given answer says we need flatness to ensure that tensoring commutes with taking images. I still find this statement unclear. Here is why:
Let $f: N' \rightarrow N$ be a morphism of $A$-modules and let $M$ be an $A$-module. Then the functor $-\otimes_A M$ takes $f$ to $f_M : N' \otimes M \rightarrow N \otimes M$ with $f_M(x \otimes y)=f(x) \otimes y$. So $\operatorname{Im} f_M = (f \otimes 1)(N' \otimes M) \subset f(N') \otimes M$. Conversely, for every $x' \in N', y \in M$ we have that $f(x') \otimes y = f_M(x' \otimes y)$ and so $f_M(N' \otimes M) = f(N') \otimes M$. Thus tensoring commutes with taking images, even if $M$ is not flat.
Is my argument correct?