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Nutty Productions Incorporated generated service revenue of $42,000 and income from operations of $16,000. The...

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Accounting

Nutty Productions Incorporated generated service revenue of $42,000 and income from operations of $16,000. The company estimates that, had it extended credit, it would have instead generated $78,000 of service revenue, but it would have incurred $31,000 of additional expenses for wages and bad debts.
Required:
1-a. Using these estimates, calculate the amount by which Income from Operations would increase (decrease).
1-b. Should the company extend credit?

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