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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The following information is available for year 1 for Pepper Products: Sales revenue (210,000 units)...
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 327,600 Depreciation (fixed) 989,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 159,600 Administrative (fixed, cash) 509,200 Administrative depreciation 84,800 Total costs $ 2,803,000 Operating profits $ 347,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: $2,900,000 $ 168,000 152,400 327,600 989,000 Sales revenue (200,000 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 412,400 149,600 509,200 64,800 $2,773,000 $ 127,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 4...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 3,000,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 317,600 Depreciation (fixed) 989,000 Marketing and administrative costs Marketing (variable, cash) 432,400 Marketing depreciation 149,600 Administrative (fixed, cash) 519,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 207,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (240,000 units) $ 3,840,000 Manufacturing costs Materials $ 226,000 Variable cash costs 192,000 Fixed cash costs 442,000 Depreciation (fixed) 1,348,000 Marketing and administrative costs Marketing (variable, cash) 570,000 Marketing depreciation 202,000 Administrative (fixed, cash) 687,000 Administrative depreciation 101,000 Total costs $ 3,768,000 Operating profits $ 72,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: $2,760,000 $ Sales revenue (120,000 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 164,000 140,000 323,000 985,000 416,000 147,000 500,000 74.000 52, 749,000 $ 11,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by...
The following information is available for year 1 for Pepper Products: Sales revenue (170,000 units) $ 4,590,000 Manufacturing costs Materials $ 271,000 Variable cash costs 230,000 Fixed cash costs 530,000 Depreciation (fixed) 1,617,000 Marketing and administrative costs Marketing (variable, cash) 683,000 Marketing depreciation 243,000 Administrative (fixed, cash) 827,000 Administrative depreciation 121,000 Total costs $ 4,522,000 Operating profits $ 68,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products $2.850.000 $ 168.000 142.100 327.600 899,000 Sales revenus 200,000 units) Manufacturing costs Materials Variable cash costs Foxed cash coete Depreciation foed) Marketing and administrative coats Marketing (variable, cashi Marketing depreciation Administrative (beo, cash) Administrative depreciation Total costs Operating profits 122.100 149.600 509,200 74,800 $2,793,000 $ 57.000 All depreciation charges are fixed and are expected to remain the same for year 2. Seles volume is expected to tell by 5...