Shaw Corporation is considering a plant expansion that will increase its sales and net income. The following data represent management's estimate of the impact the proposal will have on the company:

                              Current       Proposal

Cash                       $100,000      $120,000

Accounts payable            350,000       430,000

Accounts receivable          400,000       500,000

Inventory                    380,000       460,000

Marketable securities         200,000       200,000

Mortgage payable (current)  175,000       325,000

Fixed assets                2,500,000      3,500,000

Net income                   500,000       650,000

The effect of the plant expansion on Shaw's working capital will be a(n)

A. Decrease of $30,000.

B. Increase of $30,000.

C. Increase of $120,000.

D. Decrease of $150,000.