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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
14.8%
of sales and its payables are 15.2%
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 | $23,426 | $26,514 | $23,778 | $8,557 | ||
COGS | $9,470 | $10,719 | $9,612 | $3,459 |
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