prepare a cash budget using the adjusted net income approach.

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 Mortgage Payments- Interest Changes in Current Accounts Accounts Receivable 20,000 19,500 19,000 11,000 10,500 10,000 (5,000) 5,000 (2,000) 6,000 5,000 3,000 (7,000) (5,000) (2,000) Inventory Accounts Payable Other Planned Activity Sale of Capital Stock 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