(Accounts receivable collection policy) The Cowboy Bottling Company will generate $16 million in credit sales next year. Collection of these credit sales will occur evenly over this period. The firm's employees work 270 days a year. Currently, the firm's processing system ties up 4 days' worth of remittance checks. A recent report from a financial consultant indicated procedures that will enable Cowboy Bottling to reduce processing float by 3 full days. If Cowboy invests the released funds to earn 7 percent, what will be the annual savings? The annual savings on the new processing system will be $. (Round to the nearest dollar.)