Arrange the following steps involved in the process of financial planning in logical sequence.

(A) Sales forecast is made

(B) Requirement of fixed capital and working capital is estimated

(C) Expected profits are estimated

(D) Sources of finance are identified

Choose the correct answer from the options given below:

(A), (B), (C), (D)

The correct answer is option 1- (A), (B), (C), (D).

(A) Sales forecast is made- The process begins with forecasting sales, as it forms the basis for planning production, revenues, and financial needs.

(B) Requirement of fixed capital and working capital is estimated- Based on sales forecast, the business estimates how much capital (both fixed and working) is needed to support operations.

(C) Expected profits are estimated- After estimating costs and revenues, expected profits can be projected.

(D) Sources of finance are identified- Finally, the business identifies how to arrange the required funds through equity, debt, loans, etc.