a Aa Effective credit management invoives establishing credit standards for extending credit to austomers, determining the company's terms of credit, and setting up procedures for invoicing and coleting past-due accounts The following statement refers to a credit management policy, Select the best term to complete the sentence. How a company handles its credit accounts,including methods of invaiding and colleting past-due accounts, is indicated by the company's Consider the case of Mammoth Pictures Inc Mammoth Pictures Inc.'s CFO has decided to take a closer look at the company's credit policy. Mammoth Pictures Inc. has annual sales of $384.4 million, and it currently has an accounts receivable balanoe of $45.9 milion. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO) Based on this information, Mammoth Pictures Inc.'s DSo is (Note: Use 365 days as the length of a year in all calculations.) The average DSO for Mammoth Pictures Inc.'s industry is 51.2 days. Assuming that its sales stayed the same, what would be Mammoth Pictures Inc.'s receivables balance if it maintained the industry average DS0? Mammoth Pictures Inc.'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, ths wil cause Mammoth Pictures Inc. to lose 4% of its sales revenue what would Mammoth P tures Ines expected accounts receivables balance be if it decides to tighten its credt poicy? O $25,781,138 O 530,330,750 $31,847,288 O $33,363,825