If Liberty Celebrations does not maintain a safety stock , the estimated total carrying cost for the flag displays for the coming year is ( Points : 5 )
1 . ( TCO 2 ) Russell Company has the following projected account bala nces for June 30 , 20X9 : Accounts payable $ 60,000 Sales $ 800,000 Accounts receivable $ 100,000 Capital stock $ 400,000 Depreciation , factory $ 36,000 Retained earnings ? Inventories ( 5 / 31 & 6 / 30 ) $ 180,000 Cash $ 56,000 Direct materials used $ 210,000 Equipment , net $ 260,000 Office salaries $ 92,000 Buildings , net $ 400,000 Insurance , factory $ 4,000 Utilities , factory $ 16,000 Plant wages
$ 140,000 Selling expenses
$ 50,000 Bonds payable $ 160,000 Maintenance , factory $ 28,000 Prepare a budgeted income statement AND a budgeted balance sheet as of June 30 , 20X9 . ( Points : 25 ) budgeted income statement : 2 . ( TCO 5 ) Paul ' s Medical Equipment Company manufactures hospital beds . Its most popular model , Deluxe , sells for $ 5,000 . It has variabl e costs totaling $ 2,800 and fixed costs of $ 1,000 per unit , based on an average production run of 5,000 units . It normally has four producti on runs a year , with $ 500,000 in setup costs each time . Plant capacit y can handle up to six runs a year for a total of 30,000 beds . A competitor is introducing a new hospital bed similar to Deluxe that will sell for $ 4,000 . Management believes it must lower the price to c