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Coyle Manufacturing reports the following information for year 1 : All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in
Coyle Manufacturing reports the following information for year 1 : All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2 . Marketing and administrative depreciation are expected to remain the same for year 2 . Sales volume is expected to increase by 5 percent, but prices are expected to fall by 10 percent. Materials costs per unit are expected to decrease by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by 10 percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis. Required: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations
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