Kooks Inc. needs to free-up some cash by managing its inventories. Currently, Kooks has annual cost of goods sold of $1,600,000 and an average inventory balance of $450,000. How much cash will become available if Kooks can shorten its average age of inventory by (8) eight days? (365 days in a year, choose the nearest thousand number)

. a. $ 35,000

b. $ 56,000

c. $ 137,000

d. $ 200,000

e. None of the above

Right answer is A, What are the steps?