(Accounts receivable collection policy) The Cowboy Bottling Company will generate $10 million in credit sales next year. Collection of these credit sales will occur evenly over this period. Thefirm's employees work 320 days a year.Currently, thefirm's processing system ties up 5 days' worth of remittance checks. A recent report from a financial consultant indicated procedures that will enable Cowboy Bottling to reduce processing float by 1 full days. If Cowboy invests the released funds to earn 9 percent, what will be the annualsavings?

The annual savings on the new processing system will be $ (Round to the nearestdollar.)