Which of the following statements is CORRECT? Answer A. Perhaps the most important step when developing pro forma financial statements is to determine the breakdown of common equity between common stock and retained earnings. B. The AFN equation method produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy and economies of scale exist. C. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales. D. The capital intensity ratio gives us an idea of the physical condition of the firm