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 14.8% of sales and its payables are 15.3% 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:
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Part 1
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
15.3%
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:
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.)
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 S (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.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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