Suppose that Linksys is considering the development of a wir

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 156% of sales and its payables are 15.7%?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 Sales COGS $23,742 $26,400 $10,672 $23,608 $9,544 $8,658 $3,500 $9,598 The required investment in net working capital for year O is $O (Round to the nearest dolar) The required investment in net working capital for year 1 is SRound to the nearest dollar.) The required investment in net working capital for year 2 is $LI. (Round to the nearest dollar.) The required investment in net working capital for year 3 is $ (Round to the nearest dolar.) The required investment in net working capital for year 4 is S(Round to the nearest dollar)

Solution

Statement showing Receivable and payable

Statement showing NW requirement

Particulars	0	1	2	3	4
Sales		23742	26400	23608	8658
Receivables(15.6%)		3703.752	4118.4	3682.848	1350.648
COGS		9598	10672	9544	3500
Payables(15.7%)		1506.886	1675.504	1498.408	549.5