Business Letter

In this Assignment, you will prepare a business letter to share your advice with a client. You will explain complex financial data and discuss the cause and effect of select accounting transactions on cash balances.

Read the fictional scenario and respond to the checklist items. Scenario: The Chief Financial Officer (CFO), Karl Richland of Semtell Company in Cincinnati, Ohio is asking for your advice.

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The CFO explains sales are increasing but there is a constant matter of not having enough cash to meet payroll or pay vendors within 30 days. Checklist: Prepare a business letter (see the rubric) to the CFO to explain: 1. Explain why cash can go down even when sales are up; refer to “receivables.

2. Analyze the scenario and explain three accounts the CFO should review each day and explain why. Focus on short-term balance sheet accounts, i.e., receivables and payables.

3. Your business letter should: Use the accepted business letter format and example as provided above. Utilize Standard English and use correct spelling and grammar. Provide a clearly established and sustained viewpoint and purpose.

The writing should be well ordered, logical and unified, as well as original and insightful. Disclaimer: This exercise may include actual companies and brand names solely for instructional purposes; this exercise is not associated with any such actual company or brand name. All trademarks remain the property of their respective owners.

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