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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 14.3% of sales and its payables are 15.5%

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

$23,434

$26,522

$23,851

$8,275

COGS

$9,473

$10,722

$9,642

$3,345

Year

0

1

2

3

4

Sales

$23,434

$26,522

$23,851

$8,275

COGS

$9,473

$10,722

$9,642

.

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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