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.

Month
($000s)	0	1	2	3	4	5	6
Net Income		10	12	15	25	30	18
Depreciation		2	3	3	4	5	4
Capital Expenditures		1	0	0	1	0	0
Levels of Working Capital
Accounts Receivable	2	3	4	5	7	10	6
Inventory	3	2	4	5	5	4	2
Accounts Payable	2	2	2	2	2	2	2

During which month are the firms seasonal working capital needs the greatest?

When does the firm have surplus cash?