Question
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
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. Linksys's receivables are 14.1 % of sales and its payables are 15.9% 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 | $23,339 | $26,341 | $23,646 | $8,723 | ||
COGS | $9,435 | $10,649 | $9,559 | $3,526 |
The required investment in net working capital for year 0 is ___________
The required investment in net working capital for year 1 is ___________(Round to the nearest dollar.)
The required investment in net working capital for year 2 is ___________(Round to the nearest dollar.)
The required investment in net working capital for year 3 is ___________(Round to the nearest dollar.)
The required investment in net working capital for year 4 is ___________(Round to the nearest dollar.)
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