Henderson Office Supplies is considering a more liberal credit policy to increase sales, but it expects that $5$ percent of the new accounts will be uncollectible. Collection costs are $2$ percent of new sales, production costs are $75$ percent of sales, and accounts receivable turnover is two times. Assume an increase in sales of $$61,000.$ No other asset buildup will be required to service the new accounts.a$.$ What is the level of investment in accounts receivable to support this sales expansion?$36$Investment in accounts receivableb. What would be Henderson's incremental before$-$tax return on investment?Return on incremental investment$\%$c$.$ Should Henderson liberalize credit if a $30$ percent before$-$tax return is required $($opportunity cost of capital$)?$ Yes NoAssume Henderson also needs to increase its level of inventory to support new sales and that inventory turnover is five times on Cost of Goods Sold.d$.$ What would be the total incremental investment in accounts receivable and inventory to support a $$61,000$ increase in sales?Total incremental investment$e$.$ Given the income determined in part b and the investment determined in part d$,$ should Henderson extend more liberal creditterms? Yes No