51 b-3. Should credit be extended if 13 percent of the new sales prove uncollectible? Yes...

Transcribed Image Text:

51 b-3. Should credit be extended if 13 percent of the new sales prove uncollectible? Yes No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6 and 10 percent of the accounts are uncollectible (as in part a)? (Round the final answer to 2 decimal places.) Return on incremental investment % Help Save t c-2. Should credit be extended if the receivables turnover drops to 1.6 and 10 percent of the accounts are uncollectible (as in part af? Yes O No Problem 7-24 Reconsider Comiskey Fence. Assume the average collection period is 90 days. All other factors are the same (including 10 percent uncollectible). a. Compute the return on incremental investment. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on incremental investment b. Should credit be extended? % Yes No 51 b-3. Should credit be extended if 13 percent of the new sales prove uncollectible? Yes No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6 and 10 percent of the accounts are uncollectible (as in part a)? (Round the final answer to 2 decimal places.) Return on incremental investment % Help Save t c-2. Should credit be extended if the receivables turnover drops to 1.6 and 10 percent of the accounts are uncollectible (as in part af? Yes O No Problem 7-24 Reconsider Comiskey Fence. Assume the average collection period is 90 days. All other factors are the same (including 10 percent uncollectible). a. Compute the return on incremental investment. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Return on incremental investment b. Should credit be extended? % Yes No