Newtown Co.s CFO has decided to take a closer look at the companys credit policy. Newtown Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $45.9 million. The first step in analyzing the firms credit policy is to determine its days sales outstanding (DSO).

1) Based on this information, Newtown Co.s DSO is _________. (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.)

2) The average DSO for Newtown Co.s industry is 51.7 days. Assuming that its sales stayed the same, what would be Newtown Co.s receivables balance if it maintained the industry average DSO?________ (Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

3) Newtown 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 Newtown Co. to lose 3% of its sales revenue. What would Newtown Co.s 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.)

1. $30,507,962
2. $35,325,008
3. $32,113,644
4. $40,142,055