Acc310 Fundamentals of Cost Accounting: P13-38 Cameron Parts has the following data from year 1

Acc310 Fundamentals of Cost Accounting
P13-38
Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates:
Revenues $1,119,000
Manufacturing Costs
Materials 199,500
Variable Cash Costs 271,350
Fixed Cash Costs 108,000
Depreciation (fixed) 133,500
Marketing and Administrative costs Marketing (variable, cash) 142,500
Marketing depreciation 33,900
Administrative (fixed, cash) 135,165
Administrative depreciation 2,600
Total costs 1,036,515
Operating profits 82,485
All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of 14,550 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of 21,000. Sales volme and prices are expected to increase by 12% and 6%, respectively. On a per unit basis, espectations are that materials costs will increase by 10% and variable manufacturing costs will decrease by 4%. Fixed manufacturing costs are expected to decrease by 7%. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 8%. Inventories are kept at zero. Cameron operates on a cash basis.

Required:
Prepare a budgeted income statement for year 2.
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