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

($000)	0	1	2	3	4	5	6
Net Income		$9.55	$11.66	$14.89	$24.65	$30.11	$18.17
Depreciation		2.02	2.96	2.97	3.93	4.93	4.07
Capital Expenditures		1.01	0	0	1.01	0	0
Levels of Working Capital
Accounts Receivable	$2.09	$3.05	$3.95	$5.06	$6.92	$9.93	$6.09
Inventory	3.09	2.07	3.99	4.95	4.99	4.05	1.91
Accounts Payable	2.05	2.05	2.05	2.05	2.05	2.05	2.05

Complete the following table:

(000)	1	2	3	4	5	6
Change in A/R	$	$	$	$	$	$
Change in inventory	$	$	$	$	$	$
Change in A/P	$	$	$	$	$	$
Change in Net Working Capital	$	$	$	$	$	$

During which months is the firms change in net working capital the greatest?

From the table it can be seen that Sailboats change in net working capital is the highest in month? Because its investments in A/R, inventory and A/P increase the most in that month.

To determine when Sailboats has surplus cash we calculate the changes in cash: Round 2 decimal places and complete the following table

(000)	1	2	3	4	5	6
Net Income	$	$	$	$	$	$
+Depreciation	$	$	$	$	$	$
-Change in net working capital	$	$	$	$	$	$
Cash flow from operations	$	$	$	$	$	$
-Capital Expenditures	$	$	$	$	$	$
Change in cash	$	$	$	$	$	$
When does it have surplus cash?