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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

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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. Guif States operates on a cash basis. equired: stimate the cash from operations expected in year 2. (D not round intermediate calculations. Round your final answers to the earest whole dollar amounts.) 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: stimate the cash from operations expected in year 2. (Do not round intermediate calculations. Round your final answers to the earest whole dollar amounts.)

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