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Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: Sales revenues (12,500 units)

Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates:

Sales revenues (12,500 units) $ 1,119,000
Manufacturing costs
Materials $ 199,500
Variable cash costs 271,350
Fixed cash costs 108,000
Depreciation 133,500
Marketing and administrative costs
Marketing (variable, cash) 142,500
Marketing depreciation 33,900
Administrative (fixed, cash) 135,165
Administrative depreciation $ 12,600
Total costs $ 1,036,515
Operating profits $ 82,485

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $14,550 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21,000. Sales volume and prices are expected to increase by 12 percent and 6 percent, respectively. On a per unit basis, expectations are that materials costs will increase by 10 percent and variable manufacturing costs will decrease by 4 percent. Fixed manufacturing costs are expected to decrease by 7 percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 8 percent. Inventories are kept at zero. Cameron operates on a cash basis.

Required:

Estimate the cash from operations expected in year 2. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) GL Codes: Sales Revenue, administrative, depreciation, fixed cash costs, fixed service costs, marketing (variable, cash), Materials, Variable cash costs.

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