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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

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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 $14 , 850 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21 , 300 . Sales volume and prices are expected to increase by 9 percent and 5 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 7 percent and variable manufacturing costs will decrease by 2 percent. Fixed cash manufacturing costs are expected to decrease by 5 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero. Gulf States operates on a cash basis. Required: Estimate the cash from operations expected in year 2. (Do not round intermediate calculations. Round your final answers to the hearest whole dollar amounts.)

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