Cash cycle A firm is considering several policy changes to increase sales. It plans to increase the variety of goods it keeps in inventory, but this will increase inventory by $$100,000.$ It will offer more liberal sales terms, but this will result in receivables increasing by $$650,000.$ These actions are forecasted to increase sales by $$8$ million a year. Cost of goods sold will remain at $80\%$ of sales. Because of the firm's increased purchases for its own production needs, payables will increase by $$350,000.$ What effect will these changes have on the firm's cash cycle?