n ir Problem 13 Managers at the Topeka Corporation have just completed a long-range operations budget for 20X1-20X3. They are interested in their ability to buy fixed assets in 20X2 and 20X3 from cash generated by the business. They need tentative cash budgets for 20X1-20X3 to evaluate the situation. The following information is available: Condensed Operations Budgets Topeka Corporation 20X1-20X3 300 00 binitha ogsazo noti 20X1 20X2 o20X3 00 $5,000,000 4,000,000 $6,000,000 5,000,000 $6,500,000 6,000,000 Sales Operating expenses 20X1 20X2 20X3 500,000 500,000 500,000 Depreciation 500,000 200,000 500,000 200,000 Income before taxes -0- ST Income tax expense -0- Net income bd d il 300,000 300,000 $ -0- The income tax expense is recorded on the books only. The amount paid each year is follows: 20X1 4 20X3 50,000 10,000 20,000 1,000 20X2 Income tax liability for each year Increase in accounts receivable Increase in accounts payable Increase in inventories 150,000 150,000 20,000 10,000 5,000 o o 5,000 15,000 2,000 Expected distributions to partners (owners) fa ih100,000 110,000 120,000 Cash Management 577 Required: Prepare cash budgets for the Topeka Corporation for 20X1-20X3 using the adjusted net income approach