Suppose that Linksys is considering the development of a wireless home networking appliance, called HomeNet,...
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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 to run an entire home from any Internet connection. Linksys's receivables are 15.3% 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
$23,351
$26,552
$23,682
$8,371
COGS
$9,440
$10,734
$9,574
$3,384
.
The required investment in net working capital for year 0 is $ (Round to the nearest dollar.)
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