What are the basic benefits and purposes of developing pro

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1. What are the basic benefits and purposes of developing pro forma statements and a cash budget? What are the pitfalls in the process? How do you think you could avoid these pitfalls?

2. What effect will disinflation following a highly inflationary period have on the reported income of the firm? Why might disinflation prove to be favorable to financial assets? What's going on today that might create a spectre of worry for the firm regarding inflation or disinflation?

Reference no: EM13612859

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