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Gulf States Manufacturing has the following data from year 1 operations, which are to be used for cleveloping year 2 budget esimates: Sales revenucs (20000
Gulf States Manufacturing has the following data from year 1 operations, which are to be used for cleveloping year 2 budget esimates: Sales revenucs (20000 urits M cuss $1300000 439.000 Vereble es csls DecreMn eris e cosa 232 000 edegrecieen Uperating pronts S 1 O deprecietion cherpes are fued. Old menufecturing equipment with n ennuel deprecietion cherge of $16.350 will be repleced in yeer 2 with new equipment that will incu eanue are thet matenels costs will le maoutacturan.cocts wll dlecrease by 3 rerenm Elved cach maoufarturiao.costs are emectedto decrease w 10 eret Increese av 13 nercew and arien Veriable marketing costs will change with volume. Administretive cash costs are expected to increace by 11 percent. Imventories ere kept at zero. Gulf States operstes on e cesh basis. Hquircd Intomarion repere a budgeted income statement for yeer 2, (Do not round intermediate calculations. GULF STATES MANUFACTURING Budgeted Statement Eor Year : Manuiacturing cosis Total manutactuing costs Markong and admirisralive coss Tolal markating and adminstrahve costs Telal auets Hcaurcd Intomation Required Fstimete t cesh trom aperatlons expected in year 2 (Do not round intermediate calculations.) GULF STATES MANUFACTURING Cash Basis Budgeted Income State ment For Year 2 Manuiacturing cosis Telal manufacluring cosls Markctrg and admiristratrc casts: Tolal xh merketina and adrinigtrafive posts Telal ach ensts
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