Coyle Manufacturing reports the following information for year 1: Sales revenue (62,000 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) $ 5,160,000 $ 304,000 256,000 592,000 1,802,000 780,000 271,000 918,000 136,000 $ 5,059,000 $ 101,000 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 reports the following information for year 1: Sales revenue (62,000 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) $ 5,160,000 $ 304,000 256,000 592,000 1,802,000 780,000 271,000 918,000 136,000 $ 5,059,000 $ 101,000 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.
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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Transcribed Image Text:Coyle Manufacturing reports the following information for year 1:
Sales revenue (62,000 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)
$5,160,000
$ 304,000
256,000
592,000
1,802,000
780,000
271,000
918,000
136,000
$5,059,000
$ 101,000
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.
Transcribed Image Text: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
Cash operating profits
$
$
$
0
0
0
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