Exman Company performed a study of its billing and collection procedures and found that an average of 6 days elapses between the time when a customers payment is received and when the funds become usable by the firm. The firms annual sales are $550 million. Assume there are 365 days per year. Round your answers to the nearest dollar. Enter your answers in whole dollars. For example, an answer of $1.20 million should be entered as 1,200,000 not 1.20.

Assuming that Exman could reduce the time required to process customer payments by 4.0 days, determine the increase in the firms average cash balance.

$

Assuming that these additional funds could be used to reduce the firms outstanding bank loans (current interest rate is 6 percent) by an equivalent amount, determine the annual pretax savings in interest expenses.

$