1. Below is the projected financial information for Daisy Digital Data (DDD) for the next four quarters:

	0	Qtr 1	Qtr 2	Qtr 3	Qtr 4	Year Total
Sales		10,000	12,000	16,000	9,000	47,000
COGS		7,000	8,400	11,200	6,300	32,900
Depreciation		400	600	800	800	2,600
Net income*		800	1,100	2,100	600	4,600
Net capital spending		1,000	1,200	0	0
						Average
Accounts receivable		1,200	1,400	1,300	1,000	1,225
Inventory	2,800	3,400	4,600	2,200	2,100	3,020
Accounts payable	1,600	1,900	2,700	1,200	1,300	1,740

• Net income includes additional expenses other than those listed.

What are DDDs permanent and temporary working capital needs? If DDD ends quarter 0 with $200 in cash, then what are DDDs maximum borrowing needs and in what quarter does this occur? What are DDDs average operating cycle and average cash conversion cycle (in days).