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

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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.

2007-08-16 12:59:08 · 4 answers · asked by barnesc95 1 in Business & Finance ➔ Corporations

4 answers

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

2007-08-16 13:12:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋

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.

2007-08-16 16:07:19 · answer #2 · answered by Bob 2 · 0⤊ 0⤋

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.

2007-08-16 17:54:55 · answer #3 · answered by Sandy 7 · 3⤊ 0⤋

Are you serious?!

2007-08-16 13:03:29 · answer #4 · answered by tlc 3 · 0⤊ 1⤋