Question

A manufacturing company has prepared the operating​ budget, the cash​ budget, and the budgeted income statement and is now preparing the budgeted balance sheet. The balance of Retained Earnings can be taken from the​ ________. A. balance sheet of the previous year and the budgeted income statement B. schedule of cash receipts C. cash budget D. cost of goods sold budget

Answer 1

D.

Step-by-step explanation:

Based on the scenario being described it can be said that the balance of Retained Earnings can be taken from the​ balance sheet of the previous year and the budgeted income statement. This is because retained earnings refers to the amount of money that the company has made up until the current date. Which is why this information also includes previous year's balance sheets.