Water and Power Co.'s CFO has decided to take a closer look at the company's credit policy. Water and Power Co. has annual sales of $391.1 million, and it currently has an accounts receivable balance of $47.1 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 Water and Power Co.'s DSO? (Use 365 days as the length of a year in all calculations.) 44.0 days 35.2 days 41.8 days 30.8 days The average DSO for Water and Power Co.'s industry is 53.9 days. Assuming that its sales stayed the same, what would be Water and Power Co.'s receivables balance if it maintained the industry average DSO? $57, 754, 227 $51, 978, 804 $66, 417, 361 $54, 866, 516 Water and Power 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 Water and Power Co. to lose 3% of its sales revenue. Determine what Water and Power Co.'s expected accounts receivables balance would be if it decides to tighten its credit policy. $32, 739, 903 $31, 180, 860 $34, 298, 946 $37, 417, 032