Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past due accounts The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Sombra Corp. Sombra Corp.'s CFO has decided to take a closer look at the company's credit policy. Sombra Corp, has annual sales of $396,3 million and it currently has an accounts receivable balance of $47.2 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (050). Based on this information, Sombra Corps Sois (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your answer to one decimal place.) The average DSO for Sombra Corps Industry is 51.7 days. Assuming that its sales stayed the same, what would be Sombra Corps receivables balance in a maintained the industry average DSO? (Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar) Sombra Corp.'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 Sombra Corp. to lose 5% of its sales revenue, What would Sombra Corps expected accounts receivables balance be if it decides to tighten its credit policy? (Note: Do not round intermediate calculations Round your answer to the nearest whole dollar) $30,943,973 $26,302,377 337,132,768 $27.849,576 Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past due accounts The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Sombra Corp. Sombra Corp.'s CFO has decided to take a closer look at the company's credit policy. Sombra Corp, has annual sales of $396,3 million and it currently has an accounts receivable balance of $47.2 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (050). Based on this information, Sombra Corps Sois (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your answer to one decimal place.) The average DSO for Sombra Corps Industry is 51.7 days. Assuming that its sales stayed the same, what would be Sombra Corps receivables balance in a maintained the industry average DSO? (Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar) Sombra Corp.'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 Sombra Corp. to lose 5% of its sales revenue, What would Sombra Corps expected accounts receivables balance be if it decides to tighten its credit policy? (Note: Do not round intermediate calculations Round your answer to the nearest whole dollar) $30,943,973 $26,302,377 337,132,768 $27.849,576
