Question 1 (35 marks) Philip Incorporated is evaluating credit to a new group of customers. These are customers that were originally considered a higher credit risk. Data relating to these customers is provided below. No other asset build up will be required to service the new customers. Additional credit sales $ Likely % of sales uncollectible Additional collection expenses $ Production and marketing expenses (as a % of sales) Receivables turnover Desired return on investment Should Philip Incorporated extend credit to these customers? Show calculations to substantiate your answer. 290,000 25% 15,000 40% 4x 15%