Scenario: * 300-word minimum* The Chief Financial Officer (CFO), Karl Richland of Semtell Company in Cincinnati, Ohio is...

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Accounting

Scenario:
* 300-word minimum*

The Chief Financial Officer (CFO), Karl Richland of Semtell Companyin Cincinnati, Ohio is asking for your advice. The CFO explainssales are increasing but there is a constant matter of not havingenough cash to meet payroll or pay vendors within 30 days.
Checklist: Prepare a business letter (see the rubric) to the CFO toexplain:
1. Explain why cash can go down even when sales are up; refer to“receivables.”
2. Analyze the scenario and explain three accounts the CFO shouldreview each day and explain why. Focus on short-term balance sheetaccounts, i.e., “receivables and payables.”
3. Your business letter should:
•   Use the accepted business letter format and exampleas provided above.
•   Utilize Standard English and use correct spelling andgrammar.
•   Provide a clearly established and sustained viewpointand purpose.
•   The writing should be well ordered, logical andunified, as well as original and insightful.

Answer & Explanation Solved by verified expert

4.4 Ratings (707 Votes)

Karl Richland DATE Chief Financial Officer CFO Semtell Company Cincinnati Dear sir This letter is in relation to the explanation of the fact as to why the cash flows of your company are falling despite of increase in sales of your company For this analysis the first thing that requires attention is CREDIT SALES if increase in sales reflect increase in account See Answer

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