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

Sales revenues (13,000 units)	$	1,170,000
Manufacturing costs
Materials	$	209,000
Variable cash costs		285,000
Fixed cash costs		114,000
Depreciation (fixed)		140,000
Marketing and administrative costs
Marketing (variable, cash)		148,000
Marketing depreciation		36,000
Administrative (fixed, cash)		144,000
Administrative depreciation	$	13,000
Total costs	$	1,089,000
Operating profits	$	81,000

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $15,650 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $22,100. Sales volume and prices are expected to increase by 8 percent and 4 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 4 percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 4 percent. Inventories are kept at zero. Gulf States operates on a cash basis.

Required:

Prepare a budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)