Osato Chemicals Inc. 's CFO has decided to take a closer look at the company's...
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Osato Chemicals Inc. 's CFO has decided to take a closer look at the company's credit policy. Osato Chemicals Inc. has annual sales of $391.1 milion, and it currently has an accounts receivable balance of $47.6 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 sato Chemicals Inc:s DSO? (Use 365 days as the length of a year in ll aculations.) O 33.3 days 31.1 days O 37.7 days 44.4 days The average DSO for Osato Chemicals Inc.'s industry is 53.9 days. Assuming that its sales stayed the same, what would be Osato Chemicals Inc.'s receivables balance if it maintained the industry average DSO? O $51,978,804 O $66,417,361 O $60,641,938 O $57,754,227 Osato Chemicals Inc.'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 Osato Chemicals Inc. to lose 7% of its sales revenue. Determine what Osato Chemicals Inc.'s expected accounts receivables balance would be if it decides to tighten its credit policy $32,884,566 O $29,895,060 $34,379,319 O $26,905,554
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