Question: Under the new assumptions that KXS's market share will increase by 0.25% per year (implying that the investment, financing and depreciation will be adjusted as

Under the new assumptions that KXS's market share will increase by 0.25% per year (implying that the investment, financing and depreciation will be adjusted as described in Problems 13 and 14) and that the assumptions about working capital used in the chapter still hold, calculate KXS' working capital requirements through 2016 (that is, reproduce Table 17.9 under the new assumptions)?

TABLE 17. 9 KXS Projected Working Capital Needs

Under the new assumptions that KXS's market share will increase


1 Year 2011 2012 2013 2014 2015 2016 2 Working Capital ($000s) 3 Assets 4 Cash 5 Accounts Receivable 6 Inventory 7 Total Current Assets 8 Liabilities 9 Accounts Payable 11,982 14,139 16,520 19,167 22,107 25,367 14,229 16,790 19,617 22,761 26,25230,124 14,978 17,674 20,64923,959 27,633 31,709 2 2 41,189 48,603 56,786 65,88675,99287,201 11,982 14,139 16,520 19,167 22,107 25,367 11,982 14,139 16,520 19,167 22,107 25,367 0 10 11 12 13 Total Current Liabilities Net Working Capital Net Working Capital (7-10) Increase in Net Working Capital 29,207 34,464 40,266 46,719 53,885 61,833 5257 5802 6453 7166 7948

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