Use the exhibits in the Excel file to prepare a six-month budget. Use the blanks tab in the Excel file to prepare: a. Sales budget b. Production budget (note: ending inventory should be 300 units 20% of next month's sales) c. Purchases budget d. Cash budget (note the collections pattern for sales is provided and accounts payable is paid the following month Exhibit 7 provides beginning accounts payable balances). The company wants to maintain a $100,000 cash balance, so you may need to borrow to maintain the desired balance. 3. Based on the descriptions of the budgeting process for Travel-Space Trailers, recommend ways in which the budgeting process could be improved.

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EXHIBIT 1. ACTUAL AND PROJECTED SALES IN NUMBER OF TRAILERS Actual Sales 2016 2017 14,880 15,991 Projected Sales 2015 13,765 2021 28,000 2022 33,600 EXHIBIT 2. FINISHED GOODS INVENTORY Budget: December 31, 2020 Current finished goods Inventory formula + 2023 40,320 2018 17,809 2024 48,384 1,000 trailers 300 trailers *plus* 20% of the next month's sales 2019 19,634 2025 58,060 2020 23,322 EXHIBIT 1. ACTUAL AND PROJECTED SALES IN NUMBER OF TRAILERS Actual Sales 2016 2017 14,880 15,991 Projected Sales 2015 13,765 2021 28,000 2022 33,600 EXHIBIT 2. FINISHED GOODS INVENTORY Budget: December 31, 2020 Current finished goods Inventory formula + 2023 40,320 2018 17,809 2024 48,384 1,000 trailers 300 trailers *plus* 20% of the next month's sales 2019 19,634 2025 58,060 2020 23,322