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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 chief financial officer (CFO) of a company. You will explain complex financial data and discuss the cause and effect of select accounting transactions on cash balances.

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Read the fictional scenario and respond to the checklist items.


The 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 in the company’s cash flow statement, prepare an informational 

business letter
 to the CFO explaining the seven items listed below. Note: There is no actual cash flow statement for you to look at, but you must write the letter based on your understanding of the cash flow statement and what represents the sources and uses of cash.

1. Explain why cash can go down even when sales are up.

2. Explain how increases in accounts receivables and inventory balances affect cash flows within a company.

3. Explain what effect increases or decreases in asset and liability accounts have on cash flow.

4. Explain how changes in accounts payable balances impact cash flows.

5. Recommend a possible solution for the company’s 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.

MT480 Unit 1 Assignment 2

Business Letters

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.

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. If there is no letterhead, put the company’s

name and address at the top on left hand side (for block format).

Opening information. Then double space and put the date (month, day, year for the

United States). Next you will put the name and address of the customer or client.

• 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 double space between paragraphs.

A visual example layout and format of a block formatted business letter as described

above can be seen below by scrolling down.

MT480 Unit 1 Assignment 2

[Example block formatted business letter described on page 1.]

XYZ Corporation

16 Heritage Business Park

Boston, Mass.


Ms. Carla Tencher

Pilot Airways

Sentry Valley, CA. 22203

Dear Ms. Tencher,

[Body of the letter]


[Signature goes here]

Richard Tobi, V.P.


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