$14.$ Which of the following statements related to Financial Statement Forecasting is correct?

a$.$ One of the key steps in the development of pro forma financial statements is to identify those assets and liabilities which increase spontaneously with net income.

b$.$ The first, and most critical, step in constructing a set of pro forma financial statements is establishing the sales forecast.

c$.$ Pro forma financial statements as discussed in the text are used primarily to assess a firm's historical performance.

d$.$ All else equal, if a firm operates at full capacity, the greater its payout ratio, the less additional funds that will be needed for a particular growth in sales.

e$.$ The projected balance sheet forecasting method produces accurate results when fixed assets are lumpy and when economies of scale are present.