first drop down:

credit terms

credit standards

collection policy

Second drop down:

35.54

37.63

41.81

29.27

Third drop down:

53,326,759

50,520,087

61,746,773

56,133,430

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. The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Wok Bar Co:: Wok Bar Co.'s CFO has decided to take a doser look at the company's credit policy. Wok Bar Co, has annual sales of $396.3 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, Wok Bar Cois DSO is (Note: Use 365 days as the length of a year in all calculations.) The average DSO for Wok Bar Co.'s industry is 51.7 days. Assuming that its sales stayed the samie, what would be Wok. Bar Co.s receivables balance if it maintained the industry average DSO? Wok. Bar Co.'s CFO think that the company has not done a very good Job of entorcing 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; howevec, this will cause Wok Bar Co. to lose 6% of its sales revenue. What would Wok: Bar Cois expected accounts recevables balance be if it decides to tighten its credit policy? 532,149,152 126,025,504 $33,680,064 $30,618,240