Coyle Manufacturing reports the following information for year 1:1 Sales revenue (64,000 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 $ 5,190,000 $ 306,000 256,000 594,000 1,804,000 800,000 273,000 920,000 Operating profits (losses) 138,000 $5,091,000 $ 99,000 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.
Coyle Manufacturing reports the following information for year 1:1 Sales revenue (64,000 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 $ 5,190,000 $ 306,000 256,000 594,000 1,804,000 800,000 273,000 920,000 Operating profits (losses) 138,000 $5,091,000 $ 99,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Coyle Manufacturing reports the following information for year 1:
Sales revenue (64,000 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
$ 5,190,000
$ 306,000
256,000
594,000
1,804,000
800,000
273,000
920,000
138,000
Operating profits (losses)
$ 5,091,000
$ 99,000
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
Manufacturing costs (cash):
For Year 2
Total cash manufacturing costs
$
0
Marketing and administrative costs:
Total cash marketing and administrative costs
Total cash costs
$
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F530569a2-952a-4eb7-9bca-ed2a7863567e%2F82d18db1-a2e9-421c-b026-b4a69090166a%2Fdugum3r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Coyle Manufacturing reports the following information for year 1:
Sales revenue (64,000 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
$ 5,190,000
$ 306,000
256,000
594,000
1,804,000
800,000
273,000
920,000
138,000
Operating profits (losses)
$ 5,091,000
$ 99,000
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
Manufacturing costs (cash):
For Year 2
Total cash manufacturing costs
$
0
Marketing and administrative costs:
Total cash marketing and administrative costs
Total cash costs
$
0
$
0
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