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Gulf States Manufacturing has the following data from year 1 operations, which are to be used for developing year 2 budget estimates:

Sales revenues (15,000 units)$1,350,000Manufacturing costsMaterials$241,000Variable cash costs329,000Fixed cash costs132,000Depreciation (fixed)162,000Marketing and administrative costsMarketing (variable, cash)172,000Marketing depreciation42,000Administrative (fixed, cash)168,000Administrative depreciation$15,000Total costs$1,261,000Operating profits$89,000

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.

Required:

Prepare a budgeted income statement for year 2.(Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)