One basic weakness of the simplified pro forma approaches lies in the assumption that certain variables, such as cash, accounts receivable, and inventories, can be forced to take on certain "desired" values.

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The statement is true. Simplified pro forma approaches often assume that certain variables can be manipulated or controlled to achieve specific desired outcomes, but this overlooks the complexities and uncertainties involved in real-world scenarios. Factors such as consumer demand, competition, economic conditions, and supply chain disruptions can all affect the actual values of cash, accounts receivable, and inventories, and it may not be possible or advisable to force these variables to conform to predetermined targets. Therefore, simplified pro forma approaches should be used with caution and should be complemented by more detailed and realistic financial modeling techniques.

One Basic Weakness of the Simplified Pro Forma Approaches Lies