Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, 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. How a company handies its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company's Consider the case of Stowe-Arts Holdings Co.: Stowe-Arts Holdings Co.'s CFO has decided to take a closer look at the company's credit policy. Stowe-Arts Holdings Co. has annual sales of $396.3 million, and it currently has an accounts receivable baiance 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, Stowe-Mrts Holdings Cons Dso is (Note: Use 365 days as the length of a year in all calculations.) The average Dso for Stowe-Arts Holdings Cois industry is 51.7 days. Assuming that its sales stayed the same, what would be Stowe-Arts Holdings Co.s receivables belance if it maintained the industry average Dso? Stowe-Arts Holdings 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 Stowe-Arts Holdings Co, to fose 6% of its saies revenue. What would Stowe-Arts Holdings Co.'s expected accounts receivables balance be if it decides to tighten its credit policy? 326,025,504 $38,272,800 $35,210,976 $30,618,240