ALLIED PRODUCTS, INC. In the summer of 2015, Amax Corporation had completed an ambitious P100 million expansion

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ALLIED PRODUCTS, INC. In the summer of 2015, Amax Corporation had completed an ambitious P100 million expansion program which would allow Amax to sell special alloy bars and sheets for various specialty metal products manufacturing shops in Metropolitan Manila. Amax estimates its market for such special alloys to run up to P250 million per annum, boosting its sales by over P20 million per month. The net profit on such products after deducting plant operating costs and general selling and administration expenses, would be 10%, a neat addition to the already existing profitable product lines of the company. In the past year, Amax had sales of P1 billion and a net profit of P805 million and the bad debt losses were, as usual, less than percent. Amax believes that its new sales but could open up a vast reservoir of new demand which in 2-3 years could help double the company's present sles volume and profits. Sales Department, therefore, presented Credit Department with a list of firms which they believed were "typical" of the new batch of small manufacturing companies that could soon be their customers. Among in the list was Allied products, Inc. which was investigated by Credit Department. Within the week, Estriktims Credit Investigation Services submitted to Amax its report on Allied Products, Inc., and Sales Department pressed Credit Department for a decision to sell Allied on 30-days credit an initial supply of 1,200 kgs valued t P200,000. QUESTIONS: 1. If you were the Credit Manager, what would you have done? 2. What considerations would you take into account in reaching your decision 3. Considering the urgency of the decision, would you still call for additional data or checkings to be able to make a judgment? If so, what additional data and checkings would you require first before deciding on the matter? 4. What analytical procedures would you undertake to reach a decision.