Question: 3. Answer a and b. a. Explain how forecasting to develop pro forma financial statements differs from forecasting for capital budgeting analysis. b. Explain how

3. Answer a and b.

a. Explain how forecasting to develop pro forma financial statements differs from forecasting for capital budgeting analysis.

b. Explain how forecasting to develop a cash budget differs from forecasting for capital budgeting analysis.

(Include differences in the information used in the forecast, and how differences in the purpose of the forecast influences the information used and interpretation of the result.)

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