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Suppose that the managers of the router division of Cisco Systems are considering the development of a wireless home networking appliance, called HomeNet, that
Suppose that the managers of the router division of Cisco Systems are 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. Cisco's receivables are 14.1% of sales and its payables are 14.7% 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 $0. (Round to the nearest integer. Enter decreases as negative numbers.) 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 $ 1934.06 (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 1 Year 2 Sales 3 COGS 0 1 $23,499 $26,677 $9,383 $10,720 2 3 4 $23,518 $8,464 $9,774 $3,327 - Next
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