Choice "C" is correct. The budgeted income statement produces anticipated accrual basis net income or loss and is added to beginning owner's equity to generate the owner's equity section of the budgeted balance sheet.Choice "b" is incorrect. The sales budget is the starting point for all operating and cash flow budgets but does not directly provide information for preparation of the owner's equity section of the budgeted balance sheet.Choice "a" is incorrect. The cash budget reconciles the budgeted income statement to the change in cash and displays cash flow requirements but does not directly provide information for preparation of the owner's equity section of the budgeted balance sheet.Choice "d" is incorrect. The capital expenditures budget describes the amounts that will be paid for long-lived assets but does not directly provide information for preparation of the owner's equity section of the budgeted balance sheet.