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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 14.6% 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:

Solve for The required investment in net working capital for year 0, 1, 2, 3, 4 and 5

Year

0

1

2

3

4

Sales

$23,403

$26,618

$23,659

$8,506

COGS

$9,461

$10,761

$9,564

$3,439

The required investment in net working capital for year 0 is $

The required investment in net working capital for year 1 is $

The required investment in net working capital for year 2 is $

The required investment in net working capital for year 3 is $

The required investment in net working capital for year 4 is $

The required investment in net working capital for year 5 is $

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