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 c

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 c

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?

Month

($000)

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


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