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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

15.8%

of sales and its payables are

14.4%

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

$23,620

$26,428

$23,902

$8,528

COGS

$9,549

$10,684

$9,663

$3,448

The required investment in net working capital for year 0 is

$nothing.

(Round to the nearest dollar.)The required investment in net working capital for year 1 is

$nothing.

(Round to the nearest dollar.)The required investment in net working capital for year 2 is

$nothing.

(Round to the nearest dollar.)The required investment in net working capital for year 3 is

$nothing.

(Round to the nearest dollar.)The required investment in net working capital for year 4 is

$nothing.

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