Prepare a cash budget for the years 2024, 2025 and 2026 using the adjusted income approach and the following information:

	2024	2025	2026
Budgeted Pretax Income	0	30,000	175,000
Depreciation Expense	25,000	25,000	30,000
Mortgage Payments - Principle	19,000	19,500	20,000
Mortgage Payments - Interest	15,000	14,500	14,000
Changes in Current Accounts
Accounts Receivable	(6,000)	7,000	(7,000)
Inventory	6,000	5,000	(6,000)
Accounts Payable	(2,000)	4,000	(2,000)
Other Planned Activity
Sale of Capital Stock		100,000
Purchase of Property	30,000	50,000

Cash at the beginning of 2024 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