1-

Quarterly working capital levels for your firm for the next year are included in the following table. What are the permanent working capital needs of your company? What are the temporary needs?

	Quarter
(000)	1	2	3	4
Cash	$100	$100	$100	$100
Accounts Receivable	195	96	105	603
Inventory	199	501	897	54
Accounts Payable	97	102	97	99

What are the permanent working capital needs of your company?

The permanent working capital needs of your company are $ ?

2-

Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm's seasonal working capital needs the greatest? When does it have surplus cash?

($000)	0	1	2	3	4	5	6
Net Income		$ 10.39	$ 11.54	$ 14.72	$ 24.76	$ 29.92	$ 18.44
Depreciation		2.08	3.05	3.01	4.05	4.95	3.92
Capital Expenditures		1.03	0.00	0.00	1.04	0.00	0.00
Levels of Working Capital
Accounts Receivable	$ 2.08	$ 3.09	$ 4.07	$ 4.99	$ 7.02	$ 9.95	$ 5.93
Inventory	2.94	1.95	4.03	5.09	4.92	4.07	1.94
Accounts Payable	2.06	2.06	1.95	2.07	2.03	2.06	1.91

What is the change in :

Change in Accounts Receivable? In month 1, 2,3,4,5 and 6

Change in Inventory? In month 1, 2,3,4,5 and 6

Change in Accounts Payable? In month 1, 2,3,4,5 and 6