Days sales outstanding Tessier-Ashpool inc.'s CFO has decided to take a closer look at the company's credit policy. Tessier-Ashpool inc. has annual sales of $384.4 million, and it currently has an accounts receivable balance of $47.6 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 Tessier-Ashpool inc.'s DSO? (use 365 days as the length of a year in all calculations.) 36.2 days 45.2 days 40.7 days 49.7 days The average DSO for Tessier-Ashpool inc.'s industry is 51.7 days. Assuming that its sales stayed the same, what would be Tessier-Ashpool inc.'s receivables balance if it maintained the industry average DSO? $49,003, 116 $54, 447, 907 $62, 615, 093 $46, 280, 721 Tessier-Ashpool 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, this will cause Tessier-Ashpool Inc. to lose 7% of its sales revenue. Determine what Tessier-Ashpool Inc.'s expected accounts receivables balance would be if it decides to tighten its credit policy. $35, 259, 480 $36, 728, 625 $27, 913, 755 $29, 382, 900