Problem $13-56($Algo$)$ Prepare Budgeted Financial Statements $($LO $13-5)$

Coyle Manufacturing reports the following information for year $1$:

All depreciation charges are fixed. Manufacturing depreciation is expected to increase by $10$ percent in year $2.$

Marketing and administrative depreciation are expected to remain the same for year $2.$ Sales volume is expected to

increase by $5$ percent, but prices are expected to fall by $10$ percent. Materials costs per unit are expected to decrease

by $8$ percent. Unit variable cash manufacturing costs are expected to increase by $15$ percent. Fixed cash costs are

expected to increase by $6$ percent.

Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by $10$

percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis.

Required:

Prepare a budgeted income statement for year $2$ for Coyle Manufacturing.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.