What effect did the change in the holding period (inventory days on hand) during 20Y3 have on Defenders Designs' financing needs? (round your days on hand calculation to two decimal places)

A) financing needs decreased by approximately $296,000

B) financing needs increased by approximately $296,000

C) financing needs decreased by approximately $68,000

D) financing needs increased by approximately $68,000

Defenders Designs, Inc.

Balance Sheets (common Size)

(in $000s)

As At December 31:

Assets	20Y3	%	20Y2	%	20Y1	%
Current assets
Cash and equivalents	$310	9.5	$230	7.8	$221	8.6
Accounts receivable	1,194	36.6	846	28.8	794	31.1
Raw materials	501	15.4	611	20.8	440	17.2
Work in process	452	13.9	409	13.9	275	10.8
Finished goods	146	4.5	156	5.3	156	6.1
Total inventory	1,099	33.7	1,176	40.0	871	34.1
Other current assets	36	1.1	41	1.4	23	0.9
Total current assets	2,639	80.9	2,293	78.1	1,909	74.7
Gross fixed assets	699	21.4	723	24.6	701	27.4
Less: accumulated depreciation	117	3.6	99	3.4	89	3.5
Net fixed assets	582	17.8	624	21.2	612	24.0
Patents and trademarks	40	1.2	20	0.7	34	1.3
TOTAL ASSETS	$3,261	100	$2,937	100	$2,555	100
LIABILITIES AND EQUITY
Current liabilities
Current portion-LTD	$19	0.6	$19	0.6	$19	0.7
Notes Payable	810	24.8	775	26.4	745	29.2
Note payable Jack Newsome-subordinated	200	6.1	200	6.8	200	7.8
Accounts payable	1,053	32.3	834	28.4	551	21.6
Accrued expenses	288	8.8	207	7.0	155	6.1
Other current liabilities	11	0.3	25	0.9	12	0.5
Total current liabilities	2,381	73.0	2,060	70.1	1,682	65.8
Long-term debt	162	5.0	169	5.8	175	6.8
Other noncurrent liabilities	3	0.1	3	0.1	3	0.1
Total liabilities	2,546		2,232		1,860
Owners equity	715	21.9	705	24.0	695	27.2
TOTAL LIABILITIES AND EQUITY	$3,261	100	$2,937	100	$2,555	100

Defenders Design, Inc.

Income Statements

(in $000s)

Years Ended December 31:

	20Y3	20Y2	20Y1
Sales	$8,010	$7,506	$6,515
COGS	6,328	6,377	5,473
Gross profit	1,682	1,129	1,042
Selling, general & admin expenses	1,315	858	706
Depreciation expense	26	24	18
Interest expense	84	78	54
Loss on disposition of fixed assets	27	0	0
Other expense	22	4	0
Net income before taxes	208	165	264
Provision for income taxes	100	79	130
Net income	$108	$86	$134