PepsiCo Inc. is evaluating its credit policy. The following data is available:

13. 
    
    • Current Sales: $70 billion
    • Current Average Collection Period: 30 days
    • Proposed Average Collection Period: 45 days
    • Expected Increase in Sales: 10%

Requirements:

13. 
    
    4. Calculate the impact of the proposed policy on accounts receivable.
    5. Determine the change in the accounts receivable turnover ratio.
    6. Compute the cost of extending the credit period.
    7. Analyze the benefits of the proposed credit policy.
    8. Make a recommendation on whether PepsiCo should extend the credit period.