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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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