Baxley Brothers has a DSO of 26 days, and its annual sales are $6,205,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest cent.

The receivable balance is $ 442,000

Explanation:

The DSO is the abbreviation for Days Sales Outstanding and is referred to in no of days.

Based on the data in the question, the average daily sales is $ 6,205,000/ 365 days.

$ 6,205,000 / 365 days =   $ 17,000 per day

If the DSO is 26 days, we need to multiply the average daily sales by the number of days to get the receivable balance

$ 17,000 *DSO of 26 =  $ 442,000

answer; depth;

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%