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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 14.2% of sales and its payables are 15.8% 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

$23,578

$26,463

$23,579

$8,694

COGS

$9,532

$10,698

$9,532

$3,515

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 ____

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