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Mears and Company has been operating for five years as an electronics component manufacturer specializing in cellular

phone components. During this period, it has experienced rapid growth in sales revenue and in inventory. Mr$.$ Mears and

his associates have hired you as Mears's first corporate controller. You have put into place new purchasing and

manufacturing procedures that are expected to reduce inventories by approximately one$-$third by year$-$end. You have

gathered the following data related to the changes:

P$7-7$ Part $2$

What is the effect of the projected change in the inventory balance on cash flow from operating activities for the year?