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 1,000 Beginning inventory 4,000 Budgeted sales 15,000 17,000 20,000 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)