Coyle Manufacturing reports the following information for year $1$:

Sales revenue $(64,000$ units$)$ $ $5,190,000$

Manufacturing costs

Materials $ $306,000$

Variable cash costs $256,000$

Fixed cash costs $594,000$

Depreciation $($fixed$)1,804,000$

Marketing and administrative costs

Marketing $($variable$,$ cash$)800,000$

Marketing depreciation $273,000$

Administrative $($fixed$,$ cash$)920,000$

Administrative depreciation $138,000$

Total costs $ $5,091,000$

Operating profits $($losses$)$ $ $99,000$

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:

Prepare a budgeted income statement for year $2$ for Coyle Manufacturing.Coyle Manufacturing

Budgeted Income Statement

For Year $2$

Sales revenue

Manufacturing costs:

Materials

Variable cash costs

Fixed cash costs

Depreciation $($fixed$)$

Total manufacturing costs $$0$

Marketing and administrative costs:

Marketing $($variable$,$ cash$)$

Marketing depreciation

Administrative $($fixed$,$ cash$)$

Administrative depreciation

Total marketing and administrative costs $$0$

Total costs $$0$

Operating profit