Which of the following statements about the process of forecasting a firms pro forma Financial Statements is TRUE?

	1.	One of the critical challenges in developing the pro forma Financial Statements is that of circularity
	2.	Over time, all companies will reach a steady state where their sales growth and performance measures flatten out
	3.	If the firms industry and the way in which the external environment affects the industry are understood, there is no need to consider how macroeconomic factors affect the firm directly
	4.	It is impossible for a firm to change its asset turnover (ATO) ratio and hence there is no need to forecast the ATO