A Firm Is Considering Changing Their Credit Terms

A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,000. This in turn would cause inventory to increase by $125,000, accounts receivable to increase by $100,000, and accounts payable to increase by $90,000. What is the firm's expected change in net working capital?

A) $1,735,000
B) $315,000
C) $225,000
D) $135,000