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Refer to the data in Problem. Estimate the cash from operations expected in year 2.In Problem, Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: 

Sales revenue (12,500 units). . . . . . . . $1,119,000
Manufacturing costs Materials . . . . . . . . . . . . . . . . . . . . . $ 199,500
Variable cash costs . . . . . . . . . . . . . 271,350
Fixed cash costs . . . . . . . . . . . . . . . 108,000
Depreciation (fixed) . . . . . . . . . . . . 133,500
Marketing and administrative costs Marketing (variable, cash) . . . . . . . . 142,500
Marketing depreciation . . . . . . . . . . 33,900
Administrative (fixed, cash) . . . . . . . 135,165
Administrative depreciation . . . . . . . $ 12,600
Total costs . . . . . . . . . . . . . . . . . . $1,036,515
Operating profits . . . . . . . . . . . . . . . . . $ 82,485

All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $14,550 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $21,000. Sales volume and prices are expected to increase by 12 percent and 6 percent, respectively. On a per unit basis, expectations are that materials costs will increase by 10 percent and variable manufacturing costs will decrease by 4 percent. Fixed manufacturing costs are expected to decrease by 7 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 8 percent. Inventories are kept at zero. Cameron operates on a cash basis.

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