The Daisy Company had net credit sales of $\$ 870,000$ for the year. Cash sales for the year were $\$ 1,170,000$. Its receivables at the beginning of the year were $\$ 46,000$ and at the end of the year they had increased to $\$ 83,000$. The Dasy Company has credit terms of net 30 days. Compute the days' sales outstanding and evaluate the ratio as strong or weak. (Round any intermediary calculations to two decimal places and your final answer to the nearest day.)
A. Days' sales outstanding 27 days; strong
B. Days' sales outstanding 27 days; weak
C. Days' sales outstanding 12 days, strong
D. Days' sales outstanding 12 days; weak

Step 1 ：Given that the Daisy Company had net credit sales of $870,000 for the year, cash sales of $1,170,000, receivables at the beginning of the year were $46,000 and at the end of the year they had increased to $83,000. The company has credit terms of net 30 days.

Step 2 ：The days' sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment after a sale has been made. It is calculated by dividing the total accounts receivable by the total net credit sales for a period and multiplying the result by the number of days in the period. The formula for DSO is: \[DSO = \frac{Accounts Receivable}{Net Credit Sales} \times Days\]

Step 3 ：Substitute the given values into the formula to calculate the DSO. The accounts receivable at the end of the year is $83,000 and the net credit sales for the year is $870,000. The period is a year, so the number of days is 365.

Step 4 ：Calculate DSO: \[DSO = \frac{83000}{870000} \times 365 = 34.82\]

Step 5 ：Round the DSO to the nearest day: \[DSO = \boxed{35}\] days

Step 6 ：Evaluate the ratio as strong or weak. A lower DSO value means that it takes a company fewer days to collect its accounts receivable. A higher DSO number shows that a company is selling its product to customers on credit and taking longer to collect money. Since the company has credit terms of net 30 days, a DSO of 35 days is slightly higher than the credit terms, which could be seen as a weak point as the company is taking slightly longer to collect receivables.

Step 7 ：Final Answer: The days' sales outstanding is \(\boxed{35}\) days and the ratio is \textbf{weak}.