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1185 09575 1275 Question 16 5 pts The Tortuga Corp has annual credit sales of...

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1185 09575 1275 Question 16 5 pts The Tortuga Corp has annual credit sales of $2.5 million Current expenses for the collection department are $40.000, bad debt losses are 1.5%, and the days sales outstanding is 35 days. The firm is considering easing its collection efforts such that collection expenses will be reduced to $18,000 per year. The change is expected to increase bad debt losses to 2.5% and to increase the days sales outstanding to 61 days. In addition, sales are expected to increase to $26 million per year. Should the form relax collection efforts if the opportunity cost of funds is 16%, the variable cost ratio is 75%, and taxes are 25N? Yes, profits grow by $5,509 Yes, pronts grow by $2,907 No, profits fall boy 55.509 No, pronts fall by $2.907 Question 17 Spts Cobla industries is considering changes in its working capital policies to improve its cash flow cycle Cobla's last year were $5.2 million Call on credit, and its net profit margin was 8% its inventory turnover was 5.0 times during the year and its DSO was 40 days. Its annual cost of goods sold was 53.5 million. The firm had fixed assets totaling $550.000. Cobus payables deferral period is 40 days

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