Which of the following statements about the process of forecasting a firms pro forma Financial Statements is NOT true?

	1.	In developing the pro forma Financial Statements, it is important to understand both the market for the firms products and the firms marketing plan
	2.	Forecasts of the firms future activities should be conservative to ensure that the value of the firm is not overstated
	3.	In developing the pro forma Financial Statements, it is important to have some accounts that expand or contract in response to changes in activities
	4.	Following the development of sales forecasts, one of the next critical steps is to forecast the firms asset turnover ratio (ATO)