$[$The following information applies to the questions displayed below.$]$

The following information is available for Fairmount Industries from year $1$ operations:

Sales revenue $(58,000$ units$)$ $ $1,685,000$

Manufacturing costs

Materials $ $253,000$

Variable cash costs $558,000$

Fixed cash costs $340,000$

Depreciation $($fixed$)173,000$

Marketing and administrative costs

Marketing $($variable$,$ cash$)184,000$

Marketing depreciation $54,000$

Administrative $($fixed$,$ cash$)175,000$

Administrative depreciation $21,500$

Total costs $ $1,758,500$

Operating profits $($losses$)$ $ $(73,500)$

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $$35,000$ will be fully depreciated by the end of year $1$ and will not be replaced with new equipment because it is still operating to specification. Sales volume is expected to decrease by $2$ percent. Sales price is expected to increase by $8$ percent. On a per$-$unit basis, expectations are that materials costs will decrease by $5$ percent and variable manufacturing cash costs will increase by $4$ percent. Fixed cash manufacturing costs are expected to increase by $12$ percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to decrease by $15$ percent. Inventories are kept at zero. Fairmount Industries operates on a cash basis. No change is expected in marketing or administrative depreciation.

Required:

Prepare a budgeted income statement for year $2.$