Apple is planning on launching a new iPhone in 2019. To support the launch, Apple plans to increase its stock of raw materials by $50mil. Following the increased demand for raw materials, Apple’s suppliers asked for a change in contract terms that would lead to a 25% decrease in Apple’s accounts payable, relative to the 2018 value of $67mil.

By how much will Apple’s net working capital change between 2018 and 2019?

Will this change correspond to an increase or a decrease in Apple’s cash flows from financing activities?

Suppose that Apple forecasts revenues of $120mil, SGA expenditures of $30mil, depreciation expenditures of $20mil, and net income of $33mil. What is the expected cash flow from operating activities of Apple for 2019?