Problem 13-52 (Algo) Estimate Cash from Operations (LO 13-5) The following information is available for year 1 for Pepper Products $3,000,000 Sales revenue (200,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits $ 168,000 132,400 337,600 999,000 422,400 139,600 499,200 84,800 32,783,000 $ 217,000 All depreciation charges are fixed and are expected to remain the same for year 2 Sales volume is expected to foll by 4 percent, but prices are expected to rise by 16 percent. Material costs per unit are expected to increase by 15 percent. Other unit variable manufacturing costs are expected to decrease by 10 percent per unit Fixed cash costs are expected to increase by 5 percent Variable marketing costs will change with unit volume Administrative cash costs are expected to increase by 7 percent. Inventories are kept at zero Pepper Products 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.) PEPPER PRODUCTS Cash Basis Budgeted Income Statement Marketing costs will change with unit volume. Administrative cash costs are expected to increase by 7 percent. Inventories are kept at zero. Pepper Products 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.) pped ook PEPPER PRODUCTS Cash Basis Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs (cash) Matenals Other vanable costs Fixed cash costs int ences $ 0 Total cash manufacturing costs Marketing and administrative costs Marketing (variable, cash) Administrative (foed, cash) Total cash marketing and administrative costs Total cash costs Cash operating profit $ $ 0 0