5. Change in Credit Policy The Boyd Corporation has annual credit sales of $1,600,000. Current annual expenses for the collection department are $35,000, bad debt losses are 1.5%, and DSO is 30 days. The firm is considering easing its collection efforts. Collection expenses will be reduced to $22,000 per year. The change is expected to increase bad debt losses to 2.5% and to increase DSO to 45 days. In addition, sales are expected to increase to $1,675,000. The opportunity cost of funds is 16% (required return & cost of borrowing), the variable cost ratio is 75% of sales, and the tax rate is 25%. What is the change in profits if the firm makes these changes? (Hint: create income statements for each scenario and find the change in profits) Round your final answer to whole numbers. $