21. The PRIMARY reason given by those companies that impose credit limits is: to control risk exposure because of customer's financial position to improve the supplier's perceived status by signaling selectivity because of experience with customer 22. The operating motive for offering trade credit suggests that the amount of credit extended by a business is an alternative to increasing or decreasing the level of inventories closing down a business defaulting on a short-term bank loan billing more aggressively on contracts with suppliers 23. Which of the following are advantages that credit sellers have over ban Information advantage Control advantage Salvage value advantage a and b all of the above 24. Emily Cheney is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $40,000 per day in new sales. On average, they will pay in 68 days. The variable cost ratio is 80%, collection expenses are 2% of sales, and the cost of capital is 10%. What is the NPV of one day's sales if Emily grants credit? Assume that there is no bad debt loss. $4,226.81 $5,190.78 $6,483.06 $7,200.00 25. Traditional but flawed measures used to monitor receivables balances include each of the following except: uncollected balance percentages the aging schedule accounts receivable turnover days sales outstanding