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 to run an entire home from any Internet connection.​ Linksys's receivables are 14.1 % of sales and its payables are 15.9% 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		$23,339	$26,341	$23,646	$8,723
COGS		$9,435	$10,649	$9,559	$3,526

The required investment in net working capital for year 0 is ​___________

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.)

Answer 1