prepare PRODUCTION, PURCHASING, and CASH budgets for Lets Go for the first six months of 2011 using the formats presented in the case. To keep from losing sales, the company maintains finished goods inventory on hand at the end of each month equal to 300 trailers plus 20% of the next months sales. The finished goods inventory on December 31, 2010, was budgeted to be 1,300 trailers. Jim West, Lets Gos vice president of marketing and sales, would rather see a minimum finished goods inventory of no less than 1,500 trailers. In keeping with the policy set by Tom as Lets Gos production manager, the amount of sheet aluminum on hand at the end of each month must be equal to one-half of the following months production needs for sheet aluminum. The raw materials inventory on December 31, 2010, was budgeted to be 41.000 square yards. The company does not keep track of work-in-process inventories. Hints and suggestions: Aluminum should be budgeted at $8 per square YARD. The cash disbursement for Aluminum should be based on the calculated Purchases budget. Note: per page 2 of the case, "Accounts for aluminum and other materials are paid in full during the month following their purchase." The word "Financing" on the example Cash Budget is a section header. One should edit the "Repayment" line to read "Repayments and Investments" or this can be two separate lines. Remember, the Board mandates a $100,000 minimum cash balance.