Answer (D) is correct . The statement of cash flows is usually the last of the listed items prepared. All other elements of the budget process must be completed before it can be developed.
Answer (A) is incorrect because The capital expenditure plan must be prepared before the cash budget. Cash may be needed to pay for capital purchases.
Answer (B) is incorrect because The income statement must be prepared before the statement of cash flows, which reconciles net income and net operating cash flows.
Answer (C) is incorrect because Cost of goods sold is included in the income statement, which is an input to the statement of cash flows.
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