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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.

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?

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