Question $(2)$

BPS$,$ Inc., is proposing to offer $60-$day terms to its customers and $6-$hour fixed price delivery. It believes this will increase sales by $15\%.$ The projections supplied $($below$)$ reflect extra operating expenses $($higher delivery costs$)$ and extra inventory being held to guarantee availability. However, they assume that only some customers will take advantage of the longer terms, which in your view is not realistic. Management believes its short$-$term line of credit of $$350,000$ will be sufficient to help finance the expansion, based on the projections. However, if all of BPS$\text{'}$s customers take the full $60$ days to pay, what cash flow impact is likely to be reflected in the line of credit funding need?