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i need only answers b. Show ucun Accounts receivable Inventory Plant and equipment 58 8 x 2 x All $600.000 of the sales I be

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i need only answers

b. Show ucun Accounts receivable Inventory Plant and equipment 58 8 x 2 x All $600.000 of the sales I be collectible. However, collection costs will be 3 percent of sales, and production and selling costs will be 77 percent of sales. The cost to carry inventory will be 6 percent of inventory. Amortization expense on plant and equipment will be 7 percent of plant and equipment. The tax rate is 30 percent. a Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made? b. Compute the accounts receivable collection costs and production and selling costs and add the two figures together. Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $600,000. The company will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: c. Compute the costs of carrying inventory. d. Compute the amortization expense on new plant and equipment. e. Add together all the costs in parts b, c, and d. f. Subtract the answer from part e from the sales figure of $600,000 to arrive at income before taxes. Subtract taxes at a rate of 30 percent to arrive at income after taxes. g. Divide the aftertax return figure in part fby the total investment figure in part a. If the firm has required return on investment of 12 percent, should it undertake the promotional campaign described throughout this

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