Question: Help Save & Exit Submit The following information is available for year 1 for Pepper Products: $3,045,000 $ 168,000 132,400 337,600 999,000 Sales revenue (210,000

 Help Save & Exit Submit The following information is available for
year 1 for Pepper Products: $3,045,000 $ 168,000 132,400 337,600 999,000 Sales

Help Save & Exit Submit The following information is available for year 1 for Pepper Products: $3,045,000 $ 168,000 132,400 337,600 999,000 Sales revenue (210,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits 432,400 149,600 499, 200 64,800 $2,783,000 $ 262,000 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 16 percent. Material costs per unit are expected to increase by 13 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 7 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. Round your final answers to the nearest whole dollar amounts.) Required: Estimate the cash from operations expected in year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) ces PEPPER PRODUCTS Cash Basis Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs (cash): Materials Other variable costs Fixed cash costs $ Total cash manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Administrative (fixed, cash) $ 0 $ 0 Total cash marketing and administrative costs Total cash costs Cash operating profit

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