Triangle Aluminum Company has the following data from 20x5 operations, which are to be used for developing 20x6 budget estimates:

REVEmUS(OOOOOR MTS) an mattene eske eee canteirsc a ca $820,000 Manufacturing costs:

Meattemelh(Uimh evel) 5% nrc, cineca terete si. uasl aaeveSanass 133,000 Unit-level (variable) overhead Cash COStS........ccceicsecreeeees 180,900 Facility-level (fixed) overhead cash COStS%......ccccccceceee 72,000 Bemreclationl (FAGIIIW EVE) Netra cadoc) lgresateucastecsiancet oasst vavnsse ns 89,000 Marketing and administrative costs:

Marketing (UGIBIEVEIS CASI) eters tegen tay tec oe tte 95,000 Marketing Gepreclations sates icanter damien teed. variant 19,500 Administrative (facility level, CASh)........cccccccceecseeseeeeseeees 90,110 Administrative depreciation .........ccccccccccceccsesssessssessesneenes 13,000 NOLAN COSIS Me Rint re eater rRRTE eee tee TIN Menon nant, nas 692,510 OHDSratingiorolitsernseny ween ee ete er tee Weocuds ae $127,490 All depreciation charges are facility-level costs. Old manufacturing equipment with an annual depreciation charge of $9,700 will be replaced in 20x6 with new equipment that will incur an annual depreciation charge of $14,000. Sales volume and prices are expected to increase by 12 percent and 6 percent, respectively.

On a per-unit basis, expectations are that material costs will increase by 10 percent and unit-level

(variable) manufacturing overhead costs will decrease by 4 percent. Facility-level (fixed) overhead costs are expected to decrease by 7 percent.

Unit-level (variable) marketing costs will change with volume. Administrative cash costs are expected to increase by 8 percent. Inventories are kept near zero. (In the following requirements, round to nearest whole numbers.)

Required

a. Prepare Triangle Aluminum Company’s budgeted income statement for 20x6.

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