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The following information is available for year 1 for Pepper Products: Sales revenue (210,000 units) $ 3,150,000 Manufacturing costs Materials $ 168,000 Variable cash costs

The following information is available for year 1 for Pepper Products:

Sales revenue (210,000 units) $ 3,150,000
Manufacturing costs
Materials $ 168,000
Variable cash costs 142,400
Fixed cash costs 337,600
Depreciation (fixed) 1,009,000
Marketing and administrative costs
Marketing (variable, cash) 412,400
Marketing depreciation 159,600
Administrative (fixed, cash) 509,200
Administrative depreciation 84,800
Total costs $ 2,823,000
Operating profits $ 327,000

All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 6 percent, but prices are expected to rise by 18 percent. Material costs per unit are expected to increase by 10 percent. Other unit variable manufacturing costs are expected to decrease by 11 percent per unit. Fixed cash costs are expected to increase by 5 percent.

Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero. Pepper Products operates on a cash basis.

Required:

Estimate the cash from operations expected in year 2. (Do not round intermediate calculations.)

PEPPER PRODUCTS CASH BASIS BUDGETED INCOME STATEMENT ? For Year 2

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Manufacturing costs (cash):
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Total cash manufacturing costs $
Marketing and administrative costs:
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Total cash marketing and administrative costs $
Total Cash costs $
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