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15. Magic Inc. has a DSO of 35 days, and its annual sales are $4,000,000. What is its accounts receivable balance

User Nicolass
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Answer:

$383,565

Explanation:

For the computation of accounts receivable balance first we need to find out the number of days which is shown below:-

Number of a day = Sales ÷ Number of days in a year

= $4,000,000 ÷ 365

= $10,959

Now

Accounts receivable balance

= Days × Number of day s

= 35 × $10,959

= $383,565

Therefore for computing the accounts receivable balance we simply applied the above formula.

Here we assume the number of days in a year is 365

User Delfina
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