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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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