Problem 13-51 (Static) Prepare Budgeted Financial Statements (LO 13-6) The following information is available for year 1 for Pepper Products: $2,850,000 Sales revenue (200,000 units) Manufacturing costs Materials 168,000 Variable cash costs 142,400 327,600 Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs 999,000 422,400 149,600 509, 200 74,800 $2,793,000 57,000 Operating profits All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 5 percent, but prices are expected to rise by 15 percent. Material costs per unit are expected to increase by 12 percent. Other unit variable manufacturing costs are expected to decrease by 10 percent per unit. Fixed cash costs are expected to increase by 4 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations.)