 got to decide how much merchandise we're going to purchase. So I'm going to say that that one is not it. D says general and administrative budget. Nah, that one's kind of later on. We do that possible. It's not one of the first things we do. So I'll keep that now. And then he says budgeted income statement. So I'll keep that because that seems like one of the last things we do. We're at like the financial statements, the budgeted financial statements, balance sheet income statement. So let's keep AD and ego through it again, which is not completed before my cash budget is prepared, either a capital expenditures budget, D general and administrative expense budget or E budgeted income statement. Of those three, if I'm just imagining what the last thing we're going to do is, I would think E is the last thing we're going to do. So of all of these, I would just consider the fact that the final product that we're going to have is going to be basically the balance sheet and income statement, typically. And therefore we don't, it can't be the case that we would have to do that before the cash budget. So the cash budgets towards the end, but the final product kind of is the financial statements or the budgeted financial statements. So I would think E final answer, which is not completed before a cash budget is prepared E budgeted income statement. Next question, which is not used to prepare a cash budget for November, A, beginning cash balance on November 1st, B, budgeted sales and collections for November, C, estimated depreciation expense for November, D, budgeted salaries expense for November, and E, budgeted capital equipment purchases for November. All right, let's go through this again, process of elimination, which is what we will apply for. Which is not used to prepare a cash budget for November, A, so we're on the cash budget, we're on the month of November, A, beginning cash balance on November 1st. Well, if we're going to prepare a cash budget, we got to start somewhere. We're not starting at zero, typically unless it's the first month of budgeting. We're starting at the beginning balance as of the beginning of the month of November 1st. So I would think we would need that. So that's not it. B, budgeted sales and collections for November. Well, we're doing a cash budget. We're going to need sales and we're going to need collections. We're going to need the cash coming in, cash going out. So I would think that we would need that. Then C says, estimated depreciation expense for November. And you might run through these and say, well, that's normal. That's normal. But depreciation notice is not used to prepare a cash budget for November. You might run through these and say, well, that's normal. That's normal. But depreciation notice is not a cash item. Books love asking this question because really, this is a question that tests a cruel items versus cash items. We're on the cash budget. The depreciation expense has no cash involved. We debit depreciation expense. We credit accumulated depreciation. We spent the cash in the past when we purchased the equipment. The act of us recording the depreciation involves no cash and therefore not on the cash budget. So as soon as we see something like depreciation, something that does not involve cash, that's usually going to be the one. And oftentimes it is depreciation is a common practice in these multiple choice questions to put in there with the cash budget. It's common mistake that's actually made as well because it's on the income statement as an expense, but there's no cash. It's kind of like a cash flow statement. And then D says budgeted salaries expense for November. And notice it says salaries expense and not cash paid. So we might say, hmm, it's got expense but not paid, but I'm going with C here. And then E says budgeted capital equipment purchases. And again, it doesn't really say whether we purchased with cash or not, but clearly we would have to consider any cash payments for capital expenditures. Those would be things like property, plant and equipment that would be purchased P, P and E. And we're going to say final answer C, which is not used to prepare a cash budget for November. C, estimated depreciation expense for November.