! Required information The following information applies to the questions displayed below) Gulf States Manufacturing has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: $1,620,000 $ 289,000 395,000 159,000 195,000 Sales revenues (18,000 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 208,000 51,000 204,000 $ 18,000 $1,519,000 $ 101,000 All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $16150 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $22,600. Sales volume and prices are expected to increase by 10 percent and 6 percent respectively. On a per-unit basis, expectations are that materials costs will increase by 8 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 6 percent Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 6 percent Inventories are kept at zero. Gulf States operates on a cash basis. Required: Prepare a 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 Manufacturing costs Total manufacturing costs Marketing and administrative costs Total marketing and administrative costs Total costs