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Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 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 $ 5,130,000 $ 302,000 256,000 590,000 1,800,000 760,000 269,000 916,000 134,000 $ 5,027,000 Operating profits (losses) $ 103,000 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. Required: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash): Total cash manufacturing costs $ 0 Marketing and administrative costs: Total cash marketing and administrative costs $ Total cash costs $ 0

Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 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 $ 5,130,000 $ 302,000 256,000 590,000 1,800,000 760,000 269,000 916,000 134,000 $ 5,027,000 Operating profits (losses) $ 103,000 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. Required: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash): Total cash manufacturing costs $ 0 Marketing and administrative costs: Total cash marketing and administrative costs $ Total cash costs $ 0

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 21BEB
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Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 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 $ 5,130,000 $ 302,000 256,000 590,000 1,800,000 760,000 269,000 916,000 134,000 $ 5,027,000 Operating profits (losses) $ 103,000 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.
Transcribed Image Text:Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 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 $ 5,130,000 $ 302,000 256,000 590,000 1,800,000 760,000 269,000 916,000 134,000 $ 5,027,000 Operating profits (losses) $ 103,000 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.
Required: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash): Total cash manufacturing costs $ 0 Marketing and administrative costs: Total cash marketing and administrative costs $ Total cash costs $ 0
Transcribed Image Text:Required: Estimate the cash from operations expected in year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Coyle Manufacturing Cash Basis Budgeted Income Statement For Year 2 Manufacturing costs (cash): Total cash manufacturing costs $ 0 Marketing and administrative costs: Total cash marketing and administrative costs $ Total cash costs $ 0
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