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: Sales revenues (37,500 units) Manufacturing costs. Materials $2,500,000 $ 400,000 Variable cash costs 545,000 Fixed cash costs 216,000 Depreciation (fixed) 267,000 Marketing and administrative costs Marketing (variable, cash) 285,000 Marketing depreciation 67,800 Administrative (fixed, cash) Administrative depreciation Total costs Operating profits 270,300 25,200 $2,076,300 $ 423,700 All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $29,100 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $42,000. Sales volume and prices are expected to increase by 8 percent and 3 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable manufacturing costs will decrease by 5 percent. Fixed cash manufacturing costs are expected to decrease by 9 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. Gulf States operates on a cash basis. Required: Estimate the cash from operations expected in year 2.