Which three accounts should the CFO review each day and why?

 

MT480

 

: Corporate Finance

 

]

 

Assignment

 

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.

 

This Assignment will assess your know

 

ledge based on the following outcome:

 

GEL

 

 

1.1:

 

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 yo

 

ur 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; ref

 

er to

 

“receivables.”

 

  1. 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

 

no

 

t 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 f

 

or 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.

 

Unit 1

 

[

 

MT480

 

: Corporate Finance

 

]

 

 

Closing paragraph.

 

Here is where you might give your strongest point or last

 

pitch and provide contact inf

 

ormation.

 

 

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 bloc

 

k format, which means that everything is aligned to the left

 

margin. In block format, paragraphs are generally not indented, so double

 

 

space between paragraphs.

 

Exampl

 

e letter

 

Directions for Submitting Your Assignment

 

Your Assignment must be written in a minimum of 2 pages with APA formatting. Please

 

label your Assignment as “UNIT 1 CFO

 

 

your name” and submit to the Unit 1

 

Assignment

 

Dropbox.

 

MT480 Unit 1 Assign

 

ment: Business Letter

 

Points

 

Possible

 

Points

 

Earned

 

Content

 

(50%)

 

Response successfully answers the assignment questions

 

based upon the required criteria. The main points of the

 

letter are well

 

 

ordered and logically developed with

 

reference to Sales,

 

and short term Balance Sheet items

 

such as Cash, Accounts Receivable and Accounts Payable.

 

The letter itself is cordial in nature and expresses ideas in

 

an original and insightful way.

 

25

 

Analysis and Critical Thinking

 

(30%)

 

Analysis includes proper explanations of the cause and

 

effect of business transactions and their impacts on cash

 

balances. The analysis makes note of the interrelationship

 

of Sales, Cash, Accounts Receivable, and Accounts

 

Payable.

 

15

 

Unit 1

 

[

 

MT480

 

: Corporate Finance

 

]

 

Response exhibits

 

strong higher

 

 

order critical thinking and

 

includes appropriate technical terminology and judgments to

 

support recommendations. All facts and comparisons are

 

presented at a level understood by those familiar with

 

accounting and or bookkeeping transactions.

 

15

 

Writing

 

(20%)

 

Sentences are clear, concise, and direct, free of errors in

 

grammar, punctuation, and spelling.

 

5

 

Presentation is in the APA format of a business letter.

 

Citations for research findings are presented.

 

5

 

Total

 

6

 

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