In the most recent year Watson Corporation had an inventory turnover ratio of 3.1. The company's managers expect to improve the inventory turnover ratio by 10% next year. If the company currently has $10 million of inventory, then what is the expected impact of the change on the company's inventory balance if its cost of goods sold stays relatively constant?

a. $0.91 million use of funds b. $0.91 million source of funds c. $1.11 million use of funds d. $1.11 million source of funds