/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: $1,485,000 Sales revenues (16,500 units) Ma costs Materials 265.000 Variable cash costs 361,000 FIxed cash costs 144.000 Depreclation (fixed) 178,000 ve costs afkeung and dd ariable cash 184,000 Marketing depreclation Administrative (fixed, cash) Administrative depreciation 44,000 176.000 $ 16.000 $1368,000 Total costs 117.000 Operating profits All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $14,950 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21,400. Sales volume and prices are expected to increase by 8 percent and 4 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable manufacturing costs decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 4 percent. zero. Gulf States operates on a cash basis. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 4 percent. Inventories are kept Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations.) GULF STATES MANUFACTURING Budgeted Income Statement For Year 2 Manufacturing costs: Total manufacturing costs Marketing and administrative costs: Total marketing and administrative costs Total costs Required: Estimate the cash from operations expected in year 2. (Do not round intermediate calculations.) GULF STATES MANUFACTURING Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs: Total manufacturing costs Marketing and administrative costs: Total cash marketing and administrative costs Total cash costs