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Effective credit policy 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. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company's Stowe-Arts Holdings Co.: collection policy credit standards credit terms Drowe remordings Co.'s CFO has decided to take a closer look at the company's credit policy. Stowe-Arts Holdings Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $46.3 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Stowe-Arts Holdings Co.'s CFO has decided to take a closer look at the company's credit policy. Stowe-Arts Holdings Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $46.3 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, Stowe-Arts Holdings 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.) The average DSO for Stowe-Arts Holdings Co.'s industry is 53.9 days. Assuming that its sales stayed the same, what would be Stowe-Arts Holdings 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.) Stowe-Arts Holdings 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 Stowe-Arts Holdings Co. to lose 3% of its sales revenue. What would Stowe-Arts Holdings 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.) O $30,507,962 $32,113,644 $38,536,373 $33,719,326