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9. Days sales outstanding Aa Aa Strickland Propane's CFO has decided to take a closer look at the company's credit policy. Strickland Propane has annual

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9. Days sales outstanding Aa Aa Strickland Propane's CFO has decided to take a closer look at the company's credit policy. Strickland Propane has annual sales of $396.3 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, what is Strickland Propane's DSO? (Use 365 days as the length of a year in all calculations.) 37.6 days O 43.9 days O 41.8 days O 46.0 days The average DSO for Strickland Propane's industry is 51.2 days. Assuming that its sales stayed the same, what would be Strickland Propane's receivables balance if it maintained the industry average DSO? $44,472,443 O $61,149,609 O $55,590,554 O $63,929,137 Strickland Propane's CFO thinks that the company has not done a very good job of enforcing its credit policy. The CFO believes that if the company were to better enforce its credit policy, it would reduce its DSO to 30 days; however, this will cause Strickland Propane to lose 7% of its sales revenue. Determine what Strickland Propane's expected accounts receivables balance would be if it decides to tighten its credit policy O $30,292,500 O $36,351,000 O $27,263,250 $31,807,125

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