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Garcia Industries has sales of $200,000 and accounts receivable of $18,000, and it gives its customers 30 days to pay. The industry average DSO is

Garcia Industries has sales of $200,000 and accounts receivable of $18,000, and it gives its customers 30 days to pay. The industry average DSO is 25 days, based on a 360-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% on any cash freed-up by this change, by how much would that increase its net income, assuming other things are held constant? Indicate to the nearest dollar.

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