Question

Baker Brothers has a DSO of 40 days, and its annual sales are $7,300,000. What is its accounts receivalble bal

Baker Brothers has a DSO of 40 days, and its annual sales are $7,300,000. What is its accounts receivalble balance? Assume it uses a 365-day year.

7 years ago - 4 answers

Best Answer

Chosen by Asker

In an ideal world,with everyone paying on time, approx.
$803,000.

7 years ago

Other Answers

Are you serious?!

by tlc - 7 years ago

How do you know the DSO and annual sales? If you got that because the company is public it should also have a balance sheet that shows their AR balance.

by Bob - 7 years ago

Sales of $7,300,000 over 365 days gives $20,000 a day, so 40 days in AR would be 40 x $20,000 = $800,000.

by Sandy - 7 years ago