Answer true or false to each of the following. Briefly explain your reasoning for each answer.

a. All else equal, increasing the projected amount of accounts receivable in a financial forecast will increase external funding required.

b. Estimates of external funding required based on cash flow forecasts are usually higher than estimates based on pro forma financial statements.

c. An annual financial forecast for 2022 showing no external funding required assures a company that no cash shortfalls are likely to occur during 2022.