| Q1: $1.8 million | Q2: 2.4 million | Q3: 8.4 million | Q4: 3.2 million |
Azamel Cosmetics specializes in cosmetics which have high levels of UV protection. The above figures show the anticipated sales over the next four quarters. Azamel carries inventory equal to 30% of next quarter's sales, has accounts payable of 20% of next quarter's sales, and accounts receivable of 25% of this quarter's sales. If its net income is 12% of sales, in which quarter is it expected that Azamel's seasonal working capital needs will be the greatest?
◦ Q1
◦ Q2
◦ Q3
◦ Q4
