Required information Problem 13-53 & 13-54 (Algo) (LO 13-4, 5, 6) The following information applies to the questions displayed below Gulf States Manufacturing has the following data from year operations which are to be used for developing year 2 budget estimates Sains (1, 5 acturing costs t ) $ 201, Vilcash roste Fixed cash costs 152.93 189, 156, a. Marketing and bonnistrativ costs arkling with Parketing depreciation Administrative (find, L ) attention Total rose Al depreciation charges are fred Old manufacturing equipment with an annual depreciation charge of $15,050 will be replaced in year 2 with new equipment that will incur annuel duplection charge of $21.500. Sales volume and prices are cxprcted to increase hy 7 pont Anda perrent l y On per unit has expectations are that materials costs will increase by 5 percent and variable manufacturing costs will decrease by 2 percent. Fred cash manufacturing LUSS expected to death by 3XL Variable marketing costs will change with volume. Administrative cosh costs are expected to increase by 3 percent Inventaries are kept att Gulf Sintas c o n cabin Problem 13-53 (Algo) Prepare Budgeted Financial Statements (LO 13-4, 6) Required: Prepare o budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. GULF STATES MANUFACTURING Budgeted Income Statement - for Year 2 Sales revenue Myrrutetty S Mars Vrablece ved cach con Depreciation fired) lotai manufactung costs Marketing and ad v eh acting depan Total marketing and ad v e costs