value 100 points Nutty Productions Inc generated service rev

value 1.00 points Nutty Productions Inc. generated service revenue of $68,000 and income from operations of $29,000. The company estimates that, had it extended credit it would have instead generated $117,000 of service revenue, but it would have incurred $44,000 of additional expenses for wages and bad debts. 1-a. Using these estimates, calculate the amount by which Income from Operations would increase (decrease) come from Operations by 1.b. Should the company extend credit? No References eBook &Resources; Worksheet here t

Solution

Current: Revnue 68000 Less Income from Operations 29000 Expense 39000 Estimated Estimated revenue 117000 Less: Estimated expense 83000 (39000+44000) Estimated Income 34000 Less: Currnet income 29000 Increase in income 5000 Income from operations increase by $ 5000. Yes, The company should extend the credit.