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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

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

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