The management of the Grow 'n' Glow Manufacturing Company expects a 10% increase in sales for the coming year and has prepared the following pro forma balance sheet and income statement (000 omitted):

BALANCE SHEET          

 Assets                                                 Liabilities   

  Cash                        $   10,670              Accounts payable        $   3,300

  Accounts receivable             16,830              Notes payable               10,000

  Inventory                       20,350              Accrued liabilities             6,600

    Total current assets        $  47,850              Total current liabilities    $  19,900

  Held-to-maturity securities   $  45,600              Long-term debt          $  35,600

  Net fixed assets                  32,200             Total liabilities            $  55,500

    Total long-term assets      $  77,800      

                                                         Equity  

    Total assets                 $125,650              Common stock            $  10,000

                                                        Additional paid-in capital      30,000

                                                        Retained earnings             29,212

                                                        Total equity                $  69,212

                                                        Total liabilities & equity    $124,712

                                                        Additional funds needed     $   938

  INCOME STATEMENT         

   Net sales                       $110,000     

   Cost of goods sold                72,820    

     Gross profit                 $  37,180     

   Selling expense                  18,040     

   General & admin. expense       12,320    

     EBIT                         $  6,820     

   Net interest expense          $  1,396    

     EBT                         $  5,424     

   Taxes @ 35%                    1,898    

      Net income                $  3,526     

   Dividends                        1,014     

   Addition to retained earnings  $  2,512     

The financial analysts have been comparing the company's forecasted operating ratios with industry averages. The industry average for the inventory turnover ratio is 4 times. If Grow 'n' Glow's inventory turnover ratio next year were to match the industry average, what would the company's position be with respect to additional funds needed or additional funds available?

A. The company would need to borrow only $295 instead of $938.

B. The company would have $1,207 additional funds available to use to either pay down its loans or invest instead of needing to borrow.

C. The company would have $2,145 additional funds available to use to either pay down its loans or invest instead of needing to borrow.

D. The company would need to borrow only $643 instead of $938.