The controller of Squiffle Ltd is having some disagreements with senior management about some company accounting policies. Squiffle, in business for only a year, has capitalised $67000 in development costs. The controller argues that such costs should be expensed instead. Assume that this accounting policy affects current income tax liability and that the company's income tax rate is 30 percent. What would the controller's proposal do to:

1. The current year's net profit?

2. The current year's cash flow?

3. Working capital at the end of the current year?