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Gulf States Manufacturing has the following data from year1 operations. which are to be used for developing year 2 budget estimates: Sales revenues (14,888 units) $1,268,888 Manufacturing costs Materials 35 225, 888 Variable cash costs 38?,888 Fixed cash costs 123,888 Depreciation (fixed) 151,888 Marketing and administrative costs Marketing (variable, cash) 168,888 Marketing depreciation 39,888 Administrative (fixed, cash) 156,888 Administrative depreciation $ 14,888 Total costs $1,175,888 Operating profits is 85,888 All depreciation charges are xed. Old manufacturing equipment with an annual depreciation charge of $15,?50 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $22,200 Sales volume and prices are expected to increase by 14 percent and 3 percent, respectively. On a perunit basis, expectations are that materials costs will increase by 12 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 9 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. Gulf States operates on a cash basis. Problem 13-53 [Algo) Prepare Budgeted Financial Statements (LO 13-4, 6) Required: Prepare a budgeted income statement for year 2. {Do not round intermediate calculations. Round your nal answers to the nearest whole dollar amounts.) Total manufacturing costs $ 0 Marketing and administrative costs: Total marketing and administrative costs Total costs 0