MAKE A CASH BUDGET FOR YEAR 2, using the similar format shown below:

Notes Regarding Year 2:

56,000 120,000 52,000 104,000 BACKGROUND DATA-NYC COMPANY AT DECEMBER 31, YEAR 1: CASH ACCOUNTS RECEIVABLE INVENTORY ACCOUNTS PAYABLE UNEARNED REVENUE SALARIES PAYABLE FIXED ASSETS ACCUMULATED DEPRECIATION CAPITAL STOCK 28,000 14,400 160,000 34,400 160,000 SALES 600000 416000 280000 COST OF SALES PURCHASES DEPRECIATION NET INCOME 20000 16000 YEAR 2 INFORMATION ENDING INVENTORY 120000 40000 UNEARNED REVENUE 0 SALARIES PAYABLE 40000 MINIMUM CASH REQUIRED ANTICIPATES GROWTH IN SALES FOR YEAR 2 8% FOR YEAR 2, EXCEPT FOR DEPRECIATION, WHICH REMAINS THE SAME; -ALL EXPENSE ITEMS ARE EXPECTED TO INCREASE BY 15% ALL EXPENSES ARE PAID IN CASH AS THEY ARE INCURRED FIXED ASSETS AND COMMON STOCK REMAIN THE SAME