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Hey can you please solve this :) Thanks for your time! Thatherton Fuels s CFO has decided to take a closer look at the company's
Hey can you please solve this :) Thanks for your time!
Thatherton Fuels s CFO has decided to take a closer look at the company's credit policy. Thatherton Fuels has annual sales of $396.3 million, and it currently has an accounts receivable balance of $45.9 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 Thatherton Fuels's DSO? (Use 365 days as the length of a year in all calculations O 42.3 days O 31.7 days O 29.6 days O 38.1 days The average Dso for Thatherton Fuels's industry is 53.4 days. Assuming that its sales stayed the same, what would be Thatherton Fuels's receivables balance if it maintained the industry average D $57,979,210 $66,676,092 $60,878,171 O $49,282,329 O Thatherton Fuels'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 Thatherton Fuels to lose 6% of its sales revenue. Determine what Thatherton Fuels's expected accounts receivables balance would be if it decides to tighten its credit policy. $29,087,328 $38,272,800 O $30,618,240 $27,556,416
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