C9 Q16

Suppose that Linksys is considering the development of a wireless home networking appliance, called HomeNet, that will provide both the hardware and the software necessary to run an entire home from any Internet connection. Link sys's receivables are 15.3%of sales and its payables are14.4%of COGS. Forecast the required investment in net working capital for HomeNet assuming that sales and cost of goods sold (COGS) will be as follows:

Year	0	1	2	3	4
Sales		$23,619	$26,697	$23,541	$8,480
COGS		$9,548	$10,793	$9,517	$3,428

The required investment in net working capital for year 0 is

The required investment in net working capital for year 1 is

The required investment in net working capital for year 2 is

The required investment in net working capital for year 3 is

The required investment in net working capital for year 4 is