Future Inc. has provided you with the following set of projection assumptions:

Future Inc.

Last Year

Year $1($Projection$)$

Year $2($Projection$)$

Year $3($Projection$)$

Sales

$$4,600,000$

$$4,876,000$

$$5,266,000$

$$5,687,400$

Sales growth

$4\%$

$6\%$

$8\%$

$8\%$

Gross profit margin

$41\%$

$46\%$

$47\%$

$49\%$

Accounts receivable days

$48$

$38$

$34$

$30$

Accounts payable days

$21$

$26$

$30$

$30$

Inventory days

$61$

$60$

$60$

$60$

Net capex

$$100,000$

$$10,000$

$$10,000$

$$5,000$

In your review of the assumptions, you are concerned about Future$$s ability to achieve the reduction in accounts receivable days, which you believe will remain at $48$ days. You also feel that gross margin will be unchanged. If you are correct, what will be the impact on year $1$ cash flow?

Cash flow will be lower than originally projected and will probably decrease compared to the prior year.

Cash flow will be largely unaffected.

Cash flow will be lower than originally projected, but likely still increase over the prior year.