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.

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

Read the following scenario:

The Chief Financial Officer (CFO) of a company is asking for your advice. The CFOexplains sales are increasing but there is a constant matter of not having enough cashto 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 onshort-term balance sheet accounts, i.e., “receivables and payables.”

The following is a general structure for informational business letters; however, this isnot 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 andcontact information at the top. Generally, readers expect to see business letterson 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 orclients. It is generally not needed for internal letters or memos.

• Opening information. This includes a date and the name and address of thecustomer.

• Introductory paragraph. For an informational business letter, the introductioncan go several ways. It can introduce the product or service or it can establish aproblem for which the reader will want to know a solution.

• Body paragraphs. Body paragraphs will follow the lead made in theintroduction. This is where you give details about the product or service andexplain how it will solve a problem you think the reader faces.

• Closing paragraph. Here is where you might give your strongest point or lastpitch and provide contact information.

• Complementary close. The letter should end with a close like Sincerely orBest or Respectfully.

• Signature block. Sign your name and include your title.

• Format of business letters. Business letters are written single-spaced andgenerally in a block format, which means that everything is aligned to the leftmargin. In block format, paragraphs are generally not indented, so doublespace between paragraphs.