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Spartan Enterprises has a project for which they forecast the following income statement and balance sheet items using the percent of sales method.
| Item | 1 | 2 |
| Sales | $200,000 | $220,000 |
| Costs (40% of sales) | $80,000 | $88,000 |
| Depreciation (25% of Prior Net Long Term Assets) | $50,000 | $55,000 |
| Interest (5% of Prior Debt) | $4,000 | $4,400 |
| Unlevered Net Income (Computed Directly) | $70,000 | $77,000 |
| Free Cash Flow (Computed Directly) | $44,000 | $48,400 |
| Net Capital Assets (110% of Sales) | $220,000 | $242,000 |
| Working Capital (33% of Sales) | $66,000 | $72,600 |
| Debt (40% of Assets) | $88,000 | $96,800 |
| Marginal tax rate | 35% | 35% |
What is the cash flow resulting from the change in working capital expected to be in year 2 of the project?
a) -$6,600 b) -$72,600 c) $72,600 d) $6,600
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