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 thegreatest? When does it have surplus cash?

($000) 0 1 2 3 4 5 6

Net Income $9.99 $11.75 $14.97 $25.01 $30.07 $18.21

Depreciation 1.95 2.95 3.04 4.08 5.08 4.07

Capital Expenditures 1.15 0.00 0.00 1.19 0.00 0.00

Levels of Working Capital

Accounts Receivable $1.97 $3.04 $3.91 $4.97 $6.95 $9.94 $5.98

Inventory 2.98 2.06 4.09 5.07 4.95 3.95 2.07

Accounts Payable 1.91 2.06 2.07 1.94 1.95 2.04 1.94

To determine Sailboats seasonal working capital needs, we calculate the changes in net working capital for the firm:(Round to two decimal places.)

000 month 1

Change in account receiveable

Change in inventory

Change in account payable

Change in net working capital