Fast turnstiles co. is evaluating the extension of credit to a new group of customers. although these customers will provide $252,000 in additional credit sales, 8 percent are likely to be uncollectible. the company will also incur $16,600 in additional collection expense. production and marketing costs represent 75 percent of sales. the firm is in a 35 percent tax bracket and has a receivables turnover of five times. no other asset buildup will be required to service the new customers. the firm has a 12 percent desired return. a-1. calculate the incremental income after taxes.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; the cpi;