Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales were $2 million. Associated with the change in net working capital from year 1 to year 2 is a cash:

1)inflow of $300,000.

2)outflow of $300,000.

3)inflow of $600,000.

4)outflow of $600,000.