Question (3) DC Ltd. has provided you with the following set of projections: DC Ltd. (In $000s) 31 Dec 20Y3 31 Dec 20Y4 Sales 7,990 8,469 Cost of goods sold 6,308 6,686 Gross profit 1,682 1,783 Operating expenses 1.403 1,487 Pperating profit 279 296 Accounts receivable 924 980 nventory 589 625 Accounts payable 1,033 1,095 They show a 6% increase in each area, but you have doubts about their accuracy. While you think that 6% sales growth seems reasonable, you are aware that additional collections staff have just been hired but have not been included within projected expenses. Your view is that operating expenses will increase by 10%. However, you believe that the additional staff will decrease receivable days from 42.2 days to 41.0 days. What will the impact of your changes in these two variables be on the business's projected cash flow? O Cash flow will increase by approximately $28,000. O Cash flow will decline by approximately $28,000. O Cash flow will decline by approximately $56,000. Bookmark for review Submit