Problem 13.11 er of the Rae C af, has requested your assistance in preparing Natalie Rae, on 3 year cash budget. NialiebShe provides the following financiadatng a 20X1 20X2 Budgeted pretax income Depreciation expense Mortgage payments: 20X3 $150,000 30,000 $(20,000) 30,000 30,000 Interest expense Principal reduction 20,000 10,000 19,500 10500 19,000 11,000 ected changes in current accounts: Accounts receivable Inventory Accounts payable 5,000 2,000 5,000 5,000 (3,000) (6,000) (5,000) 2,000 7,000 Other planned activity: Sale of capital stock Purchase of property 100,000 20,000 50,000 Additional Information: 1. Cash at the beginning of 20X1 was $40,000. 2. The average tax rate of the Rae Caf is 30%. 3. Assume operating losses can be carried forward for up to 3 years and offset against operating profits prior to calculating income taxes 4. Assume dividends are paid out during profitable years. The amount of dividends paid is equal to 40% of net income. Required: ears 20x1-20X3 for the Rae Caf using the Prepare a cash budget for they adijusted net income approach