Question no: 3 (30 marks) Apple company is thinking about extending the trade credit to new customers. Sales would increase by BD:100000, if credit were extended to these customers. Of the new accounts receivable related to these sales, 9% would be uncollectible. Additional collection costs would be 5% of sales, and selling and collection costs would be 75% of sales. The firm is in a 25% tax bracket. You are required to calculate New income after tax Percentage return on the new sales, what will be the new investment in accounts receivable and what will be the return on investment assuming the only new investment will be in Accounts receivable. Comment whether this is a good credit policy decision. Question no:4 (10 marks) Evaluate the strategies that could be followed by a company seeking to deal with the problem of overtrading Question no: 3 (30 marks) Apple company is thinking about extending the trade credit to new customers. Sales would increase by BD:100000, if credit were extended to these customers. Of the new accounts receivable related to these sales, 9% would be uncollectible. Additional collection costs would be 5% of sales, and selling and collection costs would be 75% of sales. The firm is in a 25% tax bracket. You are required to calculate New income after tax Percentage return on the new sales, what will be the new investment in accounts receivable and what will be the return on investment assuming the only new investment will be in Accounts receivable. Comment whether this is a good credit policy decision. Question no:4 (10 marks) Evaluate the strategies that could be followed by a company seeking to deal with the problem of overtrading