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 14.5% 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 $ Data table (Round to the nearest dollar.) (Click on the following icon in order to copy its contents into a spreadsheet.) 0 Year Sales COGS 1 2 3 4 $23,582 $26,444 $23,744 $8,392 $9,533 $10,690 $9,599 $3,393

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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sold (COGS) will be as follows: 囲. 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.) Data table
 
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 14.5% 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 $
example
G
Data table
(Round to the nearest dollar.)
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year
Sales
COGS
0
1
2
3
4
$23,582
$26,444
$23,744
$8,392
$9,533
$10,690
$9,599
$3,393
Print
Done
Clear all
Check answer
Transcribed Image Text: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 14.5% 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 $ example G Data table (Round to the nearest dollar.) (Click on the following icon in order to copy its contents into a spreadsheet.) Year Sales COGS 0 1 2 3 4 $23,582 $26,444 $23,744 $8,392 $9,533 $10,690 $9,599 $3,393 Print Done Clear all Check answer
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