The following table presents generic motors company's production budget. gm's inventory policy is to have ending inventory equal to20% of next month's sales.

february march april
ending inventory 5,000
beginning inventory 2,000
budgeted sales 13,000 17,000 18,000
budgeted production

required:
(a) fill in the missing numbers in the table above.
(hint if you get stuck: what is the relation between ending inventory for one month and beginning inventory for the following month? )

b) why do firms want to hold inventory of finished goods? (an alternative could be to produce exactly the amount they are going to sell, and hold zero inventories)

Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, pete’s three children, naomi, daniel, nick; fred’s three children, heather, chris and steve; and lucy’s two children, david and rachel. jose’s will states the following “i leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.” which of the following statements is correct? (a) under jose’s will rachel will receive $150,000. (b) under jose’s will chris will receive $150,000. (c) under jose’s will nick will receive $100,000. (d) under jose’s will pete will receive $200,000.