please see attachments please help with second part

Part20f2 points Gull States Manufacturing has the tollewrng 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 5 225,888 Variable cash costs 387,888 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 3 14,888 Total costs $1,175,888 Operating profits 5 85,888 All depreciation charges are xed. Old manufacturing equipment with an annual depreciation charge cf$15,750 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 pereunit 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 an a cash basis. 5 Connect X Course Hero X + X C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/KE. Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 ! Required information x Answer is complete but not entirely correct. Part 2 of 2 GULF STATES MANUFACTURING Cash Basis Budgeted Income Statement 6 For Year 2 points Sales revenue $ 1,479,492 Manufacturing costs: Materials 287,254 X Fixed cash costs 111,930 Depreciation X 157,450 X Total manufacturing costs $ 556,634 Marketing and administrative costs: Marketing (variable, cash) 182,400 Depreciation X 39,000 X Administrative (fixed, cash) V 171,600 Total cash marketing and administrative costs $ 393,000 Total cash costs $ 949,634 Cash operating profit $ 515,858 x Mc Graw Hill Education 9 M 0 11:43Gulf States Manufacturing has the following data from year1 operations. which are to be used for developing year 2 budget estimates: Part1of2 _ Sales revenues (14,888 units) $1,268,888 Manufacturing casts 6 Materials 5 225,999 POMS Variable cash costs 38?,888 Fixed cash casts 123,888 Depreciation (fixed) 151,888 Marketing and administrative casts Marketing (variable, cash) 168,888 Marketing depreciation 39.888 Administrative (fixed, cash) 15,888 Administrative depreciation $ 14,888 Total costs $1,175,888 Operating prufits I 8 88 All depreciation charges are xed. Old manufacturing equipment with an annual depreciation charge of$15,750 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 perfunit 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. Part 1 of 2 Problem 13-53 (Algo) Prepare Budgeted Financial Statements (LO 13-4, 6) 6 Required: points Prepare a budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) Answer is complete and correct. GULF STATES MANUFACTURING Budgeted Income Statement For Year 2 Sales revenue $ 1,479,492 Manufacturing costs: Materials 287,280 Variable cash costs 342,980 Fixed cash costs 111,930 Depreciation (fixed) 157,450points Total manufacturing costs $ 899,640 Marketing and administrative costs: Marketing (variable, cash) $ 182,400 Administrative (fixed, cash) V 171,600 Marketing depreciation 39,000 Administrative depreciation 14,000 Total marketing and administrative costs $ 407,000 Total costs $ 1,306,640 Operating profit $ 172,852