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Doxola Inc. is in the process of tightening its cretlit policies to reduce its days sales outstanding (DSO). Doxola Inc. currently has $3,230,000 in accounts

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Doxola Inc. is in the process of tightening its cretlit policies to reduce its days sales outstanding (DSO). Doxola Inc. currently has $3,230,000 in accounts receivable, with a DSO of 55 days. The industry average DSO is 30 days. Doxola's CFO does recognize that in tightening credit policies and pressuring customers to pay on time the firm will experience a drop in sales of approximately 10%. (5 points) a. How much is Doxola's accounts receivable balance reduced by? Round amounts to the nearest dollar. b. Briefly explain why this change in accounts receivable management policy may or may not be worth the loss in sales that Doxola Inc. would experience

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