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2 Problem 13-52 (Algo) Estimate Cash from Operations (LO 13-5) The following information is available for year 1 for Pepper Products: $3,845,000 $ 168,000 142,400

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Problem 13-52 (Algo) Estimate Cash from Operations (LO 13-5) The following information is available for year 1 for Pepper Products: $3,845,000 $ 168,000 142,400 317,6ee 1,899,000 Sales revenue (210,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits ces 432,400 159,500 499 200 84. Bee $2,813,00 $ 232,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 6 percent, but prices are expected to rise by 16 percent. Material costs per unit are expected to increase by 14 percent Other unit variable manufacturing costs are expected to decrease by 9 percent per unit. Fixed cash costs are expected to increase by 4 percent Variable marketing costs will change with unit volume Administrative cash costs are expected to increase by 6 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Estimate the cash from operations expected in year 2. (Do not round Intermediate calculations, Round your final answers to the nearest whole dollar amounts.) PEPPER PRODUCTS Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs as All depreciation charges are fixed and are expected to remain the same for year 2 Sales volume is expected to fall by 6 percent, but prices are expected to rise by 16 percent Material costs per unit are expected to increase by 14 percent. Other unit variable manufacturing costs are expected to decrease by 9 percent per unit. Fixed cash costs are expected to increase by 4 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 6 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Estimate the cash from operations expected in year 2 (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amounts.) PEPPER PRODUCTS Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash): Total cash manufacturing costs Marketing and administrative posts 0 Total cash marketing and administrative costs Total cash cost

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