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.

($000)		Month
	0	1	2	3	4	5	6
Net Income		9.8	12.2	14.7	25.2	29.6	17.9
Depreciation		2.3	2.9	3.5	3.7	4.6	4.1
Capital Expenditures		0.2	0.1	0.5	0.8	0.1	0.4
Levels of Working Capital
Accounts Receivable	2.5	3.1	4.4	4.6	7.1	9.7	6.4
Inventory	2.8	2.2	4.1	5.3	5.1	3.6	1.9
Accounts Payable	1.8	1.8	1.8	1.8	1.8	1.8	1.8

a. During which month are the firm's seasonal working capital needs the greatest?

b. When does the firm have surplus cash?

Part 1

a. During which month are the firm's seasonal working capital needs the greatest?

The month where the firm's seasonal working capital needs are the greatest is month __.