Which of the following statements is correct? When preparing a direct materials purchase budget, desired ending inventory is subtracted from the total needs of the period to arrive at materials to be purchased. The sales budget information can be used to prepare a schedule of expected cash disbursements for the forthcoming budget period. The starting point of budgeting process is to make a forecast of cash receipts and cash disbursements during the budgeted period O a noncash expense, such as depreciation, should be subtracted from the total budgeted overhead costs to determine the expected cash disbursements for overhead costs