Very quick

1. Alpha Company is considering changing their credit policy in an effort to increase sales. They anticipate the change in policy will result in additional sales of \\( \\$ 100,000 \\), however, they expect \10 of these new sales to be uncollectible. The costs associated with the sales are, collection costs ( \3 of sales) and production and selling costs ( \79 of sales). To generate these sales accounts receivable turnover will be 6 times and inventory turnover will be 4 times. Both turnovers are based on sales. a. What is the level of accounts receivable required to support the new sales? Ipt b. What is the level of inventory required to support the new sales? 1pt c. What is Alpha's forecasted increase in annual income before taxes? 3pts d. What is Alpha's return on the investment in current assets? \\( 2 \\mathrm{pts} \\) c. If Alpha's required return on investments is \20, should Alpha proceed? Why or why not? 3pts