corp Finance

2. Assignment: Business Letter

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

This Assignment will assess your knowledge based on the following outcome:

GEL-1.2: Demonstrate college-level communication through the composition of original materials in Standard American English.

Read the following scenario:

The Chief Financial Officer (CFO) of a company 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.

Prepare a business letter to the CFO to explain,

1. Why cash can go down even when sales are up; refer to “receivables.”
2. Which three accounts should the CFO review each day and why? Focus on short-term balance sheet accounts, i.e., “receivables and payables.”

The following is a general structure for informational business letters; however, this is not a template, and modifications may be necessary for composing this type of letter. An example is included at the end of this list.

• Letterhead. Most companies have stationary that has the company logo and contact information at the top. Generally, readers expect to see business letters on letterhead because it adds to the company’s credibility; so if this is available, it is advisable to use it for all business correspondence to outside customers or clients. It is generally not needed for internal letters or memos.
• Opening information. This includes a date and the name and address of the customer.
• Introductory paragraph. For an informational business letter, the introduction can go several ways. It can introduce the product or service or it can establish a problem for which the reader will want to know a solution.
• Body paragraphs. Body paragraphs will follow the lead made in the introduction. This is where you give details about the product or service and explain how it will solve a problem you think the reader faces.
• Closing paragraph. Here is where you might give your strongest point or last pitch and provide contact information.
• Complementary close. The letter should end with a close like Sincerely or Best or Respectfully.
• Signature block. Sign your name and include your title.
• Format of business letters. Business letters are written single-spaced and generally in a block format, which means that everything is aligned to the left margin. In block format, paragraphs are generally not indented, so doublespace between paragraphs.

Example letter is attached