Which of the following steps constitutes the first step in preparing the chief budget in a productive company for the next fiscal year ?

Estimate the projected cash budget to determine whether the company will need additional bank funding.

Base estimate of the indirect costs of production.

Estimate the budget of the costs of direct materials and direct labor in order to decide the volume of production required.

Estimate sales volume and projected sales budget to determine required production volume.

Budget estimates of investment in production lines expected next year