Answer (A) is correct . The last schedule prepared before the financial statements is the cash budget. The cash budget is a schedule of estimated cash collections and payments. The various operating budgets and the capital budget are inputs to the cash budgeting process.
Answer (B) is incorrect because The cost of goods sold budget provides information necessary to prepare the cash budget.
Answer (C) is incorrect because The manufacturing overhead budget provides information necessary to prepare the cash budget.
Answer (D) is incorrect because The selling expense budget provides information necessary to prepare the cash budget.
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