Which of the following statements is CORRECT?

Question $17$ options:

$1)$

The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales.

$2)$

Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management's historical performance is evaluated.

$3)$

The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.