Purdue Working Capital Management & Organization Performance Business Letter
Demonstrate college-level communication through the composition of original materials in Standard English.
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.
The Chief Financial Officer (CFO), Karl Richland of Semtell Company in Cincinnati, Ohio is asking for your advice. 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 attachments) 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.