7. Cash Cycle. A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $10,000. It will offer more liberal sales terms, but this will result in average receivables increasing by $65,000. These actions are expected to increase sales by $800,000 per year, and cost of goods will remain at 80% of sales. Because of the firm's increased purchases for its own production needs, average playables will increase by $35,000. What effect will these changes have on the firm's cash cycle? (LO20-l)