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daser333 [38]
3 years ago
5

Days sales outstanding. Baxley Brothers has a DSO of 23 days, and its annual sales are $3,650,000. What is its accounts receivab

le balance? Assume that it uses a 365 day year.
Business
1 answer:
marishachu [46]3 years ago
4 0

Answer:

$230,000

Explanation:

Given that,

Days sales outstanding, DSO = 23 days

Annual sales = $3,650,000

Assume that it uses a 365 day year

Accounts receivable = (Annual sales × Days sales outstanding) ÷ 365 days

                                  = ($3,650,000 × 23) ÷ 365 days

                                  = $83,950,000 ÷ 365 days

                                  = $230,000

Therefore, the Baxley Brothers has  $230,000 balance in its accounts receivable.

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Answer:

Factors to consider:

1. Specialisation role

2. Complexity of sales process

3.Tenure

4.Geographical coverage

5. Sales Representative leadership

6. Support network

7. Internal Bureaucracy

8. Value add of managers

Factors not to consider;

1. Market share

2. Production process

3. Distribution process

4. Personal affiliation, race or religion

Explanation:

When considering a company's span of control, which simply means the number of junior staff a manager should manage, it is important to note factors relating to geographical coverage, a wide coverage can create difficulties in supervision to a manager. Consequently reducing the span of control.

Specialisation also help in ensuring the manager is an expert in the area he or she supervise. Experienced manager with good understanding of the tasks, good knowledge of the workers and good relationships with the workers, will be able to supervise more workers

The complexity of a sale process can affect a manager's supervision performance. if the sale process for example require an online payment to a final user who may not be physically available. Supervising such sales requires adequate training.

Other factors like; Tenure, Sales Representative leadership, Support network, Internal Bureaucracy, Value add of managers are paramount in determining span of control. However, market share, production process, distribution process and personal affiliation, race and religion should not affect the span of control.

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