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0:46 ces Coyle Manufacturing reports the following information for year 1: Sales revenue (70,000 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) $ 5,280,000 $ 312,000 256,000 600,000 1,810,000 860,000 279,000 926,000 144,000 $ 5,187,000 $ 93,000 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: 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. Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation $ Total marketing and administrative costs $ 0 Total costs $ 0 Operating loss

0:46 ces Coyle Manufacturing reports the following information for year 1: Sales revenue (70,000 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) $ 5,280,000 $ 312,000 256,000 600,000 1,810,000 860,000 279,000 926,000 144,000 $ 5,187,000 $ 93,000 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: 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. Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation $ Total marketing and administrative costs $ 0 Total costs $ 0 Operating loss

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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0:46 ces Coyle Manufacturing reports the following information for year 1: Sales revenue (70,000 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) $ 5,280,000 $ 312,000 256,000 600,000 1,810,000 860,000 279,000 926,000 144,000 $ 5,187,000 $ 93,000 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: 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. Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation $ Total marketing and administrative costs $ 0 Total costs $ 0 Operating loss
Transcribed Image Text:0:46 ces Coyle Manufacturing reports the following information for year 1: Sales revenue (70,000 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) $ 5,280,000 $ 312,000 256,000 600,000 1,810,000 860,000 279,000 926,000 144,000 $ 5,187,000 $ 93,000 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: 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. Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation $ Total marketing and administrative costs $ 0 Total costs $ 0 Operating loss
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