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Takea Test Tiare Andenon-Geegle Chrome Secure | httpS//www.mathtcom/Student/PlayerTest.aspx?testid. 1704251 MGMT 273 Fall Quiz: Chapter 9 Quiz Submit Qutz This Question: 1 pt 11 of 13 (1 complete, This Quiz: 13 pts possible ph Suppose that Linksys is considering the devellopment of a wireless home networking appliance, caled HomeNet that will provide both the hardware and the software necessary to run an entire home from any Internet connection. Linksys's recelvables are 15 26 of sales and its payablies are 14.6 of CooS Forecast the required investment in net working capital for HomeNet assuming that sales and cost of goods sold (COGS) will be as follows Year0 Sales COGS $23 535 $9 514 523,730 $9.593 58436 53,410 $10.620 The required investment i, networking capital for year o i,(Round totenearest dollar) The required investment in net working captal for year 1 is S (Round to mnearest dollar ) Therequired investment in networking captal for year 2 is S (Roundtone nearest dolar) The requred investment in networking capital fo' year 3is (Round tothe nearest dolar The required investment in networking capital for year 4i,(Rond to the nearest dlar) nter your arswer in each of the answer boxes

Explanation / Answer

the required investment in net working capital

Working capital = Receivables - payables

Year 0 : 0

Year 1: 15.2%*23535 - 14.6%*9514 = 2188.28

Year 2: (15.2%*26269 - 14.6%*10620) - 2188.28 = 2442.37 - 2188.28 = 254.09

Year 3: (15.2%*23730 - 14.6%*9593) - 2442.37 = 2206.38 - 2442.37 = -235.99

Year 4: (15.2%*8436 - 14.6%*3410) - 2206.38 = 784.41 - 2206.38 = -1421.97

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