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Fraudulent Co. is comparing their financial statements from last year with this year to see...

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Accounting

Fraudulent Co. is comparing their financial statements from last year with this year to see the impact of Net-working-capital NWC to this year's Free Cash Flows (FCF). Last year the company showed $2500 in cash, $3000 in inventories, $2000 in accounts receivable, $1000 in depreciation and $3500 in accounts payable. This year, they show $1500 in cash, $2500 in ventories. $2000 in accounts receivable, $500 in depreciation, and $2500 in accounts payable. What will be the net impact of these NWC changes to the FCF for this year? In other words, will NWC increase or decrease the FCF?

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