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Due to a change in credit policy, Ewing Corp. expects to have 50 days sales outstanding. Before the change, this firm's annual sales was $50

Due to a change in credit policy, Ewing Corp. expects to have 50 days sales outstanding. Before the change, this firm's annual sales was $50 million, variable cost of goods sold was $35 million, and days sales outstanding was 55 days. The firm's credit manager estimates that this tighter credit policy will reduce sales by $5 million. What is the additional (or reduced) amount of investment matching the newly changed level of receivables?

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