Which of the Following Statements About Pro Formas Is True

Which of the following statements about pro formas is true?

A) Because tax laws depend on the whims of politicians, pro formas are always done on a before-tax basis.
B) The estimation errors in pro forma statements can be extremely large, in which case they are simply not worth the effort involved.
C) The guidelines for developing a pro forma will be different depending on the type of business.
D) Pro formas can predict sales levels easily, but they are not very useful in determining when cash might be needed and how much will be needed.