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Required information [The following information applles to the questlons displayed below.] Gulf States Manufacturing has the following data from year 1 operations, which are to
Required information [The following information applles to the questlons 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 depreclation charges are fixed. Old manufacturing equipment with an annual depreclation charge of $16,350 will be replaced in year 2 with new equipment that will Incur an annual depreclation charge of $22800. Sales volume and prices are expected to increase by 15 percent and 4 percent, respectively. On a per-unit basis, expectations are that materlals costs will increase by 13 percent and varlable manufacturing costs will decrease by 3 percent. Fixed cash manufacturing costs are expected to decrease by 10 percent. Varlable marketing costs will change with volume. Administrative cash costs are expected to increase by 11 percent. Inventorles 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.)
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