6- A company makes annual credit sales of $2M. Customer take 60 Days to pay and bad debts are 1% of sale A non-recourse factoring apreement is being considered. The factor would charge a service fees of 2% of sales per year and reduce the account receivable collection period to 40 days. Administration savings of 10,000 per annum would be made. Required Assuming a cost of working capital of 15% per year, calculate the effect on ammual profitif the forecasting option that is being considers. Please fill your answer in the table below. Annual (cost) savings $ Administration savings Bad debt reduction Factors fees Reducing in Financing cost (W) Net annun saving Worlding Reduction in cost of financing working capital Current average account receivable Revised average account receivable One-off cash flow improvement Annual saving thereonat 15%