Oregon Inc All Depreciation Charges Are Fixed and Are Expected to Remain

Oregon Inc.has the following information for its first year of operations: $\begin{array}{|l|r|}\hline \text { Revenues (250,000 units) } & \underline{ \$3,730,000} \\\hline \text { Manutacturing costs: } & \\\hline \text { Materials } & \$ 666,000 \\\hline \text { Variable cash costs } & 904,000 \\\hline \text { Fixed cash costs } & 360,000 \\\hline \text { Depreciation (fixed) } & 445,000 \\\hline \text { Marketing } \& \text { administrative costs: } & \\\hline \text { Marketing (variable) } & 475,000 \\\hline \text { Marketing depreciation } & \$ 113,000 \\\hline \text { Administrative (fixed) } & \$ 450,550 \\\hline \text { Administrative depreciation}&\underline{42,000}\\\hline \text { Total costs } & \$ 3,454,550 \\\hline \text {Operating profits}& \underline{ \$276,450}\\\hline\end{array}$
All depreciation charges are fixed and are expected to remain the same for year 2.Sales volume is expected to increase by 13%,and marketing prices are expected to increase by 4%.Material costs per unit are expected to increase by 8%.Other unit variable manufacturing costs are expected to increase by 10% per unit.Fixed manufacturing costs (other than depreciation)are expected to increase by 6%.Variable marketing costs per unit will remain constant.Administrative costs (other than depreciation)are expected to increase by 12%.Assume there are no inventories.Oregon operates on a cash basis.Required:
Prepare a budgeted income statement for year 2.

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