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: $1,350,000 $ 241,000 329,000 132,000 162,000 Sales revenues (15,000 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 172,000 42,000 168,000 $ 15,000 $1,261,000 $ 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.) GULF STATES MANUFACTURING Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) $ Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation $ Total marketing and administrative costs Total costs $ Operating profit