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:

Estimate the cash from operations expected in year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

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