book contents p to pg go 13-48. Estimate Cash from Operations (LO 13 5) Refer to the data in Problem 13-47. Estimate the cash from operations expected in year 2 13-49. Prepare Budgeted Financial Statements (LO 13 4, 6) eXcel Gulf States Manufacturing has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: $2,500,000 Sales revenue (37,500 units)... .. Manufacturing costs Materials.. $400,000 545,000 216,000 267,000 Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation 285,000 67,800 270,300 25,200 $2,076,300 Total costs $ 423,700 Operating profits All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $29,100 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $42,000. Sales volume and prices are expected to increase by 8 percent and 3 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable manufacturing costs will decrease by 5 percent. Fixed cash manufacturing costs are expected to decrease by 9 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. Gulf States operates on a cash basis. Required Prepare a budgeted income statement for year 2 13-50. Estimate Cash from Operations