Question
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)
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 $9.93 $12.14 $15.02 $25.29 $29.98 $17.65
Depreciation 2.06 3.03 3.02 3.92 4.97 4.09
Capital Expenditures 1.05 0.00 0.00 1.15 0.00 0.00
Levels of Working Capital
Accounts Receivable$2.02 $3.02$3.94 $5.02 $6.91 $10.04 $5.93
Inventory 2.971.98 4.01 5.09 4.933.94 2.07
Accounts Payable2.09 2.091.93 1.99 1.99 2.05 2.06
Using the above please solve the below for each month and answer the two above questions.
Changes in accounts receivable
Change in inventory
Change in accounts payable
Change in net working capital
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