MT 480 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.

Scenario:

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.