a more liberal credit policy to increase sales, but expects that 6 percent of the new accounts will be unoolectible. Collection costs 6 percent of new sales, production and seling costs are 78 percent, and the account receivable tumover is four a. What addtional investment in accounts receivable is needed to support this sales expansion? Incremental accounts receivabie b. What would be Henderson's incremental atertax rehum on investment? (Input yeur answer as a percent rounded to 2 decimal places.) Retun on incremenial invesiment % e. Should Henderson iberalze credt a 16 percent ahertax retum on investment is required? Yes No Assume that Henderson elso needs to increase its level of invenory to support new sales and that the innventory tumover is four times d. What would be the total incremental investment in accounts receivable and inventory needed to wpport a $80,000 inceese in sales? Total incremantal investment . Given the income delermined in part b and the investment determined in part d, should Henderson extand more lberal oredt lema? Yos No eBook & Resources eBook Inventory Management eBook Manaoement.of Accounts Receivatles