Garcia Industries has sales of $125,000 and accounts receivable of $18,000, and it gives its customers 25 days to pay. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 7.0% on any cash freed-up by this change, by how much would its net income increase, assuming other things are held constant? Assume all sales to be on credit. Do not round your intermediate calculations.