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Check The following information is available for year 1 for Pepper Products: $3,190,000 $ 178,000 152,400 317,600 999,000 ok Sales revenue (220,000 units) Manufacturing costs

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Check The following information is available for year 1 for Pepper Products: $3,190,000 $ 178,000 152,400 317,600 999,000 ok Sales revenue (220,000 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 t aces 422,400 159,600 519,200 74,800 $2,823,000 $ 367,000 All depreciation charges are fixed and are expected to remain the same for year 2 Sales volume is expected to fall by 4 percent, but prices are expected to rise by 20 percent. Material costs per unit are expected to increase by 12 percent. Other unit variable manufacturing costs are expected to decrease by 9 percent per unit. Fixed cash costs are expected to increase by 6 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 PEPPER PRODUCTS Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash) Total cash manufacturing costs Marketing and administrative costs: $ 0 Total cash marketing and administrative costs 69 $ 0 Total cash costs $ 0

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