Suppose that the managers of the router division of Cisco Systems are considering the development of...
Fantastic news! We've Found the answer you've been seeking!
Question:
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 $0. (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 1 is $ The required investment in net working capital for year 2 is $ The required investment in net working capital for year 3 is $ The required investment in net working capital for year 4 is $ 1934.06 (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 1 Year 2 Sales 3 COGS 0 1 $23,499 $26,677 $9,383 $10,720 2 3 4 $23,518 $8,464 $9,774 $3,327 - Next 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 $0. (Round to the nearest integer. Enter decreases as negative numbers.) The required investment in net working capital for year 1 is $ The required investment in net working capital for year 2 is $ The required investment in net working capital for year 3 is $ The required investment in net working capital for year 4 is $ 1934.06 (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) (Round to the nearest integer. Enter decreases as negative numbers.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 1 Year 2 Sales 3 COGS 0 1 $23,499 $26,677 $9,383 $10,720 2 3 4 $23,518 $8,464 $9,774 $3,327 - Next
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
P Corporation acquired an 80% interest in S Corporation two years ago at an implied value equal to the book value of S. On January 2, 2017, S sold equipment with a five-year remaining life to P for a...
-
You serve as the trustee for the Sooner XXV trust. The following transactions occur during 2011: September 15 Open the Sooner XXV trust account, depositing the $100,000 transferred from the estate of...
-
Discuss the forms an auditor's report may take as the result of a scope limitation.
-
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5 : 3 respectively. The following was their balance sheet as at 31 December 2002. On 1 January 2003,...
-
A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as follows: Inventory ................$ 6,500 Common stock .............. 45,000 Cash .....................
-
Question 1 1 0 p t s The Gardner's would like to send their daughter to a music camp at the end of each of the next four years. The camp costs $ 8 0 0 a year. What lump sum amount would have to be...
-
Suppose the price of UK Sports plc shares on the London Stock Exchange is 860p on February 18 th 2022. As an investor, you believe that UK Sports plc will be subject of a takeover and that you are...
-
Spotify's 2018 Goals Campaign At the end of 2017, Spotify, the music streaming service, ran a humorous campaign to encourage its users to share their data on what they listened to. The campaign was...
-
1. Assume that next year Billings Products expects to have $2,530 in inventory at the beginning of the year and $2,805 at the end of the year. Assume also that accounts receivable are expected to be...
-
Who are are the vulnerable population during natural or man-made disaster? How do they get assistance from their local leadership?
-
Identify components of effective work-life balance. Describe the importance of work-life balance. Answer the following questions: How can being mindful of your work-life balance impact employees?...
-
Describe how compensation systems encouraged risk. Be specific. Briefly explain how these compensations systems contributed to what the author calls "the fragile house of cards upon which the...
-
Assume that fair value of the Drive Division is $3,944,000 instead of $4,447,000. Determine the impairment loss, if any, to be recorded on December 31, 2025. Assume that carrying values approximate...
-
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
-
Select a large, well-known company and access its annual report online. In the annual report of the company you have chosen, find the four basic financial statements and the notes to the financial...
-
Refer to the Look Back section in this chapter and to Dells classified balance sheet in Exhibit 2. Write a memorandum to the board of directors that summarizes Dells profitability performance from...
-
Beacon Systems, located outside Atlanta, develops computer software and licenses it to financial institutions. The firm uses an aggressive accounting method that records revenues from the software it...
Study smarter with the SolutionInn App