the cost to initiate a production run is $ 30 . There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year , the first of which is to be run immediately . Liberty Celebrations has 250 business days per year . Assume that sales occur uniformly throughout the year and that production is instantaneous . If Liberty Celebrations does not maintain a safety stock , the estimated total carrying cost for the flag displays for the coming year is the estimated total setup cost for the flag displays for the coming year is ( Points : 5 ) Essay 1 . ( TCO 2 ) Russell Company has the following projected account balances for June 30 , 20X9 :. Prepare a budgeted income statement AND a budgeted balance sheet as of June 30 , 20X9 . ( Points : 25 ) Russell . Company . has . the . following . projected . account . balances . for . Ju ne . 30 ,. 20X5 : Accounts payable $ 40,000 Sales $ 800,000 Accounts receivable $ 100,000 Capital stock $ 400,000 Depreciation , factory $ 24,000 Retained earnings ? Inventories ( 5 / 31 & 6 / 30 ) $ 180,000 Cash $ 56,000 Direct materials used $ 200,000 Equipment , net $ 240,000 Office salaries $ 80,000 Buildings , net $ 400,000 Insurance , factory $ 4,000 Utilities , factory $ 16,000 Plant wages $ 140,000 Selling expenses $ 60,000 Bonds payable $ 160,000 Maintenance , factory $ 28,000 Required a ) Prepare . a . budgeted . income . statement . for . June . 20X5 . b ) Prepare . a . budgeted . balance . sheet . as . of . June . 30 ,. 20X5 . ( Points : 25 ) Balance Sheet 2 . ( TCO 5 ) Steven ' s Medical Equipment Company manufactures hospital beds . Its most popular model , Deluxe , sells for $ 5,000 . It has variable 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 production runs a year , with $ 600,000 in setup costs each time . Plant capacity 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 ……..? ( Points : 25 ) 3 . ( TCO 7 ) Dulce Greeting Cards Incorporated is starting a new business venture and is in the process of evaluating its product lines . Information for one new product , traditional parchment grade cards , is as follows : ∙ For 16 times each year , a new card design will be put