Baxley Brothers has a DSO of 32 days, and its annual sales are $8,395,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest dollar.

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To find the accounts receivable balance, we can use the formula:

\[
\text{Accounts Receivable} = \frac{\text{DSO} \times \text{Annual Sales}}{\text{Number of days in a year}}
\]

Where:
- DSO (Days Sales Outstanding) = 32 days
- Annual Sales = \$8,395,000
- Number of days in a year = 365 days

Now, plugging in the values:

\[
\text{Accounts Receivable} = \frac{32 \times 8,395,000}{365}
\]

Let's calculate that.The accounts receivable balance for Baxley Brothers is \$736,000.

Do you want more details or have any questions about this calculation?

Here are some related questions to expand your understanding:
1. How is Days Sales Outstanding (DSO) related to a company's cash flow?
2. What is the impact of a high DSO on a business?
3. How would you reduce DSO to improve liquidity?
4. Can a company have too low a DSO? What are the implications?
5. How do accounts receivable affect the balance sheet?

**Tip:** A lower DSO typically means that a company is collecting payments faster, which can help maintain a healthier cash flow.

Baxley Brothers has a DSO of 32 days, and its annual sales are $8,395,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest dollar.

Learn how to calculate the accounts receivable balance for Baxley Brothers, given a DSO of 32 days and annual sales of $8,395,000. This financial math problem involves the formula for Days Sales Outstanding (DSO) and is suitable for students in Grades 10-12.

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