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Business, 25.06.2019 00:50 s9227575

Fast turnstiles co. is evaluating the extension of credit to a new group of customers. although these customers will provide $414,000 in additional credit sales, 8 percent are likely to be uncollectible. the company will also incur $17,400 in additional collection expense. production and marketing costs represent 76 percent of sales. the firm is in a 35 percent tax bracket and has a receivables turnover of five times. no other asset buildup will be required to service the new customers. the firm has a 10 percent desired return. need with all parts of this problem. would like to know how to actually produce this. a-1. calculate the incremental income after taxes. incremental income after taxes $ a-2. calculate the return on incremental investment. (input your answer as a percent rounded to 2 decimal places.) return on incremental investment % a-3. should fast turnstiles co. extend credit to these customers? yesno b-1. calculate the incremental income after taxes if 11 percent of the new sales prove to be uncollectible. incremental income after taxes $ b-2. calculate the return on incremental investment if 11 percent of the new sales prove to be uncollectible.(input your answer as a percent rounded to 2 decimal places.) return on incremental investment % b-3. should credit be extended if 11 percent of the new sales prove uncollectible? yesno c-1. calculate the return on incremental investment if the receivables turnover drops to 1.6, and 8 percent of the accounts are uncollectible. (input your answer as a percent rounded to 2 decimal places.) return on incremental investment % c-2. should credit be extended if the receivables turnover drops to 1.6, and 8 percent of the accounts are uncollectible? noyes

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