ABC's balance sheet and income statements for the years ending December 31, 20Y1 and 20Y2: (in thousand)

20Y1 20Y2

Accounts receivable $ 770 $ 785

Inventory 902 1,075

Accounts payable $ 528 $ 473

Accrued expenses 143 136

Sales $ 5,801 $ 6,504

Cost of goods sold 4,258 4,814

What approximate effect did the change in the payment period during 20Y2 have on ABC's financing needs?

a. Financing requirements decreased by a range of $120,000 to $130,000.

b. Financing requirements increased by by a range of $120,000 to $130,000.

c. Financing requirements decreased by a range of $75,000 to $80,000.

d. Financing requirements increased by a range of $165,000 to $170,000.