Not too much theory, just simple math. You find the spot where the sum of all moments
(mass x distance) = zero. Where you would balance the plane on a see-saw, that's your CG. You start out with 2300 lbs at 95.75 inches and remove 170 lbs at 87.00 inches.
First, find the difference in CG position, then remove the moment of the burned fuel.
$95.75in - 87.00in = 8.75in$
$170lb * 8.75in = 1487.5inlb$
The new weight is 2130 lbs. The new CG is located further aft, because the fuel station is fwd of the original CG (therefore, the front is lighter after burning the fuel).
$\frac{1487.5inlb}{2130lb} = 0.70in$
So new CG is at 96.45 inches.