Questions #6 to #8 use the following setup.

Paris Croissant is running a bakery caf business.

• In order to make croissants, the store purchased flour, sugar, and cream cheese for $800today. Such a purchase used $200 in cash; and the rest is financed by a line of credit provided by its supplier.
• The croissants are sold on credit for $1,050next year.
• The store obtains the receivables and pays off the payablesin two years.

What is the change in the net working capital (NWC) for each year?

NWC: Year 0 is

NWC: Year 1 is

NWC: Year 2 is