Aa Aa 9. Days sales outstanding Western Gas & Electric Co.'s CFO has decided to take a closer look at the company's credit policy. Western Gas & Electric Co. has annual sales of $379.3 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 Western Gas & Electric Co.'s DSO? (Use 365 days as the length of a year in all calculations.) 45.9 days 43.7 days 32.8 days 30.6 days The average DSO for Western Gas & Electric Co.'s industry is 51.2 days. Assuming that its sales stayed the same, what would be Western Gas & Electric Co.'s receivables balance if it maintained the industry average DSO? $45,225,027 $42,564,731 $50,545,618 $53,205,914 Western Gas & Electric Co.'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 Western Gas & Electric Co. to lose 6% of its sales revenue. Determine what Western Gas & Electric Co.'s expected accounts receivables balance would be if it decides to tighten its credit policy. $35,165,772 $33,700,532 $29,304,810 $36,631,013