For 2007, Morris Company had 73 days of inventory on hand. Morris would like to decrease its days of inventory on hand to 50. Morris’ cost of goods sold for 2007 was $100 million. Morris expects cost of goods sold to be $124.1 million in 2008. Assuming a 365 day year, compute the impact on Morris’ operating cash flow of the change in average inventory for 2008.()
A. $ 3.0 million use of cash.
B. $ 6.3 million use of cash.
C. $ 3.0 million source of cash.