Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains

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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) working capital levels (see MyFinanceLab for the data in Excel format).

a. During which month are the firm's seasonal working capital needs the greatest?
b. When does the firm have surpluscash?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:17 AM

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Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains

Question:

Month ($000) Net Income Depreciation Capital Expenditures Levels of Working Capital $10 $12 $15 $25 $30 S18 Accounts Receivable $2 Inventory Accounts Payable 3 457 10 6

Step by Step Answer:

a Working Capital 3 3 6 8 10 12 6 Change in working capital ...View the full answer

Fundamentals of Corporate Finance

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