Prepare a cash budget for the years 2017, 2018 and 2019 using the adjusted income approach and the following information:

	2017	2018	2019
Budgeted Pretax Income	0	30,000	175,000
Depreciation Expense	25,000	25,000	30,000
Mortgage Payments - Principle	20,000	19,500	19,000
Mortgage Payments - Interest	11,000	10,500	10,000
Changes in Current Accounts
Accounts Receivable	(5,000)	6,000	(7,000)
Inventory	5,000	5,000	(5,000)
Accounts Payable	(2,000)	3,000	(2,000)
Other Planned Activity
Sale of Capital Stock		100,000
Purchase of Property	30,000	50,000

Cash at the beginning of 2017 is $30,000

The average tax rate is 25%. (Taxes must be calculated first)

Dividends of 50% of net income are paid out in profitable years