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 14.7 % of sales and its payables are 14.3 % 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 | $23,555 | $26,344 | $23,919 | $8,287 | |
COGS | $9,522 | $10,650 | $9,669 | $3,350 |
The required investment in net working capital for year 0 is $__. (Round to the nearest dollar.)
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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