acturing reports the following information for year Sales revenue (80,000 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 (losses) $5,430,000 $ 322,000 256,000 610,000 1,820,000 960,000 289,000 936,000 154,000 $5,347,000 $ 83,000 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: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs (cash): Materials Variable cash costs Fixed cash costs Depreciation Total cash manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Total cash marketing and administrative costs Total cash costs ✪ O O $ 5,131,350 ( 311,052 309,120 646,600 2.002,000 $ 3.268,772 $ $ 1,008,000 289,000 842,400 $ 2.139,400 $ 5.408,172 S (276.822) 000 Cash operating loss "Rad text indicates no response was expected in a cell or a formula-based calculation is incorrects no poin deducted

acturing reports the following information for year Sales revenue (80,000 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 (losses) $5,430,000 $ 322,000 256,000 610,000 1,820,000 960,000 289,000 936,000 154,000 $5,347,000 $ 83,000 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: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs (cash): Materials Variable cash costs Fixed cash costs Depreciation Total cash manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Total cash marketing and administrative costs Total cash costs ✪ O O $ 5,131,350 ( 311,052 309,120 646,600 2.002,000 $ 3.268,772 $ $ 1,008,000 289,000 842,400 $ 2.139,400 $ 5.408,172 S (276.822) 000 Cash operating loss "Rad text indicates no response was expected in a cell or a formula-based calculation is incorrects no poin deducted

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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