Thatherton Fuelss CFO has decided to take a closer look at the companys credit policy. Thatherton Fuels has annual sales of $379.3 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firms credit policy is to determine its days sales outstanding (DSO). Based on this information, what is Thatherton Fuelss DSO? (Use 365 days as the length of a year in all calculations.)

32.8 days

35.0 days

39.3 days

43.7 days

The average DSO for Thatherton Fuelss industry is 51.2 days. Assuming that its sales stayed the same, what would be Thatherton Fuelss receivables balance if it maintained the industry average DSO?

$45,225,027

$50,545,618

$53,205,914

$58,526,505

Thatherton Fuelss 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 4% of its sales revenue. Determine what Thatherton Fuelss expected accounts receivables balance would be if it decides to tighten its credit policy.

$29,928,330

$28,431,914

$32,921,163

$26,935,497