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		12,000	13,000	14,000	10,000	49,000
COGS		7,000	8,400	11,200	6,300	32,900
Depreciation		550	700	900	900	3,000
Net income*		650	1,000	2,000	500	4,200
Net capital spending		1,500	800	600	0
						Average
Accounts receivable		1,300	1,500	1,400	1,100	1,325
Inventory	2,800	3,300	4,500	2,100	2,000	2,975
Accounts payable	600	1,950	2,750	1,250	1,350	1,825

• 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).