true or false

Forecasting Financial Statements True or False 1. When creating pro forma financial statements, always start with the balance sheet. 2. Forecasting Financial Statements are important for planning for the future. 3. Several methods exist for forecasting sales: top-down method using macroeconomic variables, bottom-up method builds demand for each product, time series method using regression analysis tp extrapolate historic trends. 4. The firm's cash balance is the hardest item to forecast. 5.To establish if the income statement item varies with sales, one way is to create a chart comparing the item with sales over time.