Henderson Office Supply is considering a more liberal credit policy to increase sales, but expects that 7 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production and selling costs are 78 percent, and the accounts receivable turnover is five times. Assume income taxes of 30 percent and an increase in sales of $69,000. No other asset buildup will be required to service the new accounts.

Requirment

What additional investment in accounts receivable is needed to support this sales expansion?