Albinoni Ltd sells a single product and has annual sales of $200,000 per year. Inventories are held

at a constant level and each product is sold at a mark-up of 25%. The average settlement period

for trade receivables is 2 months and for trade payables it is 1 month. However, the business is considering changing these periods to 1.5 months and 3 months respectively. These changes are not

expected to have any effect on the level of sales or inventories. What will be the decrease in working capital if the proposed changes are implemented?