What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet
2. Sales Budget
3. Selling and Administrative Budget
4. Budgeted Income Statement

Question

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The proper sequence is: Sales Budget (2) is prepared first as it drives many other budgets. Then, the Selling and Administrative Budget (3) is prepared to determine operating expenses. The Budgeted Income Statement (4) is next, summarizing revenues and expenses. Finally, the Budgeted Balance Sheet (1) is prepared, reflecting the financial position at the end of the period.

What Is the Proper Preparation Sequencing of the Following Budgets