Assuming that KMS's market share will increase by 0.22% per year, you determine that the plant will require an expansion in 2018.

The expansion will cost $21.9 million. Assume the following: the financing of the expansion will be delayed accordingly (end of 2018),

KMS uses a ten-year bond, interest rates remain the same, and KMS's tax rate is 35%.

Using this information and the data given here

Projected values (000) 2013 2014 2015 2016 2017 2018 Accounts Receivable $14,264 $15,641 $17,103 $18,861 $20,630 $22,653 Inventory 14,965 16,418 18,071 19,849 21,726 23,734 Cash 11,910 13,122 14,495 15,857 17,349 19,050 Accounts Payable 11,978 13,155 14,466 15,876 17,270 19,406

, calculate KMS's additional annual working capital requirements through 2021.

The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

The additional annual working capital requirements for 2017 will be $ _____? thousand.