Fast Tumstiles Co. is evaluating the extension of credit to a new group of customers Although these customers will provide $144,000 in additional credit sales, 10 percent are likely to be uncollectible. The company will also incur $16,000 in additional collection expense. Production and marketing costs represent 71 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return. a-1. Calculate the incremental income after taxes Incremental income after taxes 7.384 a-2. Calculate the return on incremental investment. (Input your answer as a rounded to 2 decimal places.) Return on incremental investment 20 51 % a-3. Should Fast Turnstiles Co extend credit to these customers? O Yes O No a-3. Should Fast Turnstiles Co. extend credit to these customers? Yes O No b-1. Calculate the incremental income after taxes if 13 percent of the new sales prove to be uncollectible Incremental income after taxes b-2. Calculate the return on incremental investment if 13 percent of the new sales prove to be uncollectible (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % b-3. Should credit be extended if 13 percent of the new sales prove uncollectible? Yes O 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. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment c-2. Should credit be extended if the receivables turnover drops to 1.6, and 10 percent of the accounts are uncollectible? O Yes No