M8-1 evaluating the decision to extend credit [lo 8-1]
nutware productions inc. (npi) ge...
Business, 13.11.2019 23:31, fruitsnaxFTW5535
M8-1 evaluating the decision to extend credit [lo 8-1]
nutware productions inc. (npi) generated service revenue of $30,000 and income from operations of $10,000. the company estimates that, had it extended credit, it would have instead generated $50,000 of service revenue but also it would have incurred $25,000 of additional expenses for wages and bad debts.
a-1.
using these estimates, calculate the amount by which npi's income from operations would increase (decrease) by extending credit. (do not round intermediate calculations.)
income from ? decrease/increase
Answers: 1
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