Standard calculation for monthly Balance Sheet Account (Accounts Receivable) thru monthly financial kpi's and eventually get the A/R in the year end and comparing the additional investment in A/R thru the incremental credit sales. I have run monthly Accounts Receivable balance thru the assumed 85 days DSO (approximately 3 months) with monthly credit sales and considering the beginning A/R balance, and get the year-end A/R balance. Hence, I can get the additional investment in A/R thru this traditional method of calcuation. However, when I calculated the additional A/R investment in the other perspective thru incremental year credit sales and applying the same assumed DSO and 365 days in a year, I got a significant difference in the additional A/R investment/increase. Attached is the excel file. Please have your thoughts and inputs for discussion. Thanks.