COTB MC Qu. 8-25 (Static) Which of the following statements is... Which of the following statements is true with respect to a budgeted income statement? Multiple Choice Its cost of goods sold is derived from the corresponding dollar amount shown in the production budget Its selling and administrative expenses exclude depreciation expense because it is a product cost. Its net income should equal the net cash flows from the cash budget. Its net income will impact the ending retained earnings balance shown on the balance sheet