Question
Good afternoon! I need help with Berk Fundamentals of Corporate Finance with question about Linksys networking appliances called HomeNet. Suppose that Linksys is considering the
Good afternoon!
I need help with Berk "Fundamentals of Corporate Finance" with question about Linksys networking appliances called HomeNet.
Suppose that Linksys is considering the development of a wireless home networking appliances, called HomeNet, that will provide bothe the hardware and the software necessary to run an entire home from any Internet connection. Linkys's receivalbe are 15.4% of sales and its payable are 15.4% of COGS. Forcast 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 | $23,749 | $26,380 | $23,869 | $8,607 | |
COGS | $9,601 | $10,664 | $9,649 | $3,479 |
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