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

Sales revenues (20,500 units)	$	1,845,000
Manufacturing costs
Materials	$	329,000
Variable cash costs		449,000
Fixed cash costs		180,000
Depreciation (fixed)		222,000
Marketing and administrative costs
Marketing (variable, cash)		232,000
Marketing depreciation		56,000
Administrative (fixed, cash)		224,000
Administrative depreciation	$	20,000
Total costs	$	1,712,000
Operating profits	$	133,000

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $15,350 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21,800. Sales volume and prices are expected to increase by 11 percent and 5 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 9 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 6 percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 7 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.)

GULF STATES MANUFACTURING
Budgeted Income Statement
For Year 2
Manufacturing costs:
Total manufacturing costs
Marketing and administrative costs:
Total marketing and administrative costs
Total costs