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: All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $15,850 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $22,300. Sales volume and prices are expected to increase by 13 percent and 7 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 11 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 8 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 9 percent. inventories are kept at zero, Gulf States operates on a cash basis. equired: repare a budgeted income statement for year 2 . (Do not round intermediate calculations. Round your final answers to the nee hole dollar amounts.) costs will increase by 11 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 8 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 9 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 whole dollar amounts.)