The following information is available for 20x5 for Apollo Products:

RememuetdO0 OOO\umnitS) i252 dae nomen Be kaa. Ul tavetlieaiet $740,000 Manufacturing costs:

Materials (unit level)icciacncc. cea te teemotetceds. mostneanventamresetiteees $ 42,000 Unit-level (variable) overhead Cash COStS........0:cceeceeeteeee 35,600 Facility-level (fixed) overhead Cash COSts.........cccceeeeees 81,900 Bepreciationn(lacwty 1l6Vel) ceretersencetccsuentsensesntteenscecncoeue na e: 230,000 Marketing and administrative costs:

Marke timen(UMiniGVell CASI) tra citar: ncanecteckcastareqeasstteercpuct 105,600 Marketing Gepreciation sania. marcas tsontenstecsguetseskorauaetneactse s 41,000 Administrative (facility level, CASH)... cece ccectettenteenees 127,300 Acininistratlve Ce preCiallOMmnr.tcarieetencccttaccttteccsusuitteres. 18,700 OtaCOSISmereane Prin iccnt:. tier. aera aimee homer $682,100

@OeralinGiOlOlite ve: wren eee Meee ae aes, Eee See $ 57,900 All depreciation charges are facility-level costs and are expected to remain the same for 20x6. Sales volume is expected to increase by 18 percent, but prices are expected to fall by 5 percent. Material costs are expected to decrease by 8 percent. Unit-level (variable) manufacturing overhead costs are expected to decrease by 2 percent per unit. Facility-level (fixed) manufacturing overhead costs are expected to increase by 5 percent.

Unit-level (variable) marketing costs change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. (In the following requirements, round to the nearest whole number.)

Required

a. Prepare a budgeted income statement for 20x6.

b. Estimate the cash from operations expected in 20x6.