Suppose that the managers of the router division of Cisco Systems are 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. Cisco's receivables are 14.1% 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 $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 1 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 2 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 3 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 4 is $ (Round to the nearest integer. Enter decreases as negative numbers.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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Suppose that the managers of the router division of Cisco Systems are 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. Cisco's receivables are 14.1% 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 $ (Round to the nearest integer. Enter decreases as negative numbers.)
The required investment in net working capital for year 1 is $ (Round to the nearest integer. Enter decreases as negative numbers.)
The required investment in net working capital for year 2 is $ (Round to the nearest integer. Enter decreases as negative numbers.)
The required investment in net working capital for year 3 is $ (Round to the nearest integer. Enter decreases as negative numbers.)
The required investment in net working capital for year 4 is $ (Round to the nearest integer. Enter decreases as negative numbers.)
Transcribed Image Text:Suppose that the managers of the router division of Cisco Systems are 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. Cisco's receivables are 14.1% 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 $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 1 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 2 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 3 is $ (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 4 is $ (Round to the nearest integer. Enter decreases as negative numbers.)
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