Required information

$[$The following information applies to the questions displayed below.$]$

The following information is available for Fairmount Industries from year $1$ operations:

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $$24,000$ will be

fully depreciated by the end of year $1$ and will not be replaced with new equipment because it is still operating to

specification. Sales volume is expected to decrease by $2$ percent. Sales price is expected to increase by $8$ percent. On a

per$-$unit basis, expectations are that materials costs will decrease by $5$ percent and variable manufacturing cash costs will

increase by $4$ percent. Fixed cash manufacturing costs are expected to increase by $12$ percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to decrease by $15$ percent.

Inventories are kept at zero. Fairmount Industries operates on a cash basis. No change is expected in marketing or

administrative depreciation.

Required:

Prepare a budgeted income statement for year $2.$

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.