Assignment 2: Business Letter

In this assignment, you will be assessed based on the following Course Outcome:

GEL-1.02: 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 the CFO of a company. 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: Using the information contained in the companys cash flow statement, prepare an informational business letter to the CFO to explain:

1. Why cash can go down even when sales are up.
2. How increases in accounts receivables and inventory balances affect cash flows within a company.
3. What effect increases or decreases in asset and liability accounts have on cash flow.
4. How changes in accounts payable balances impact cash flows.
5. Recommend a possible solution for the companys shortage of working capital.
6. Your informational 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.
   • Include at least one scholarly, high-quality, and current Purdue Global Library source and/or your textbook.

Directions for Submitting Your Assignment

Your business letter must be a minimum of 2 pages using current APA formatting. Please label your assignment as UNIT 1 CFO - your name and submit to the Unit 1 Assignment 2 Dropbox.

For assistance with APA formatting, go to the Academic Tools area of the course and select APA Style Central, where you will find many resources to assist you.

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.