Description
Good morning, I hope that you had a great holiday weekend. However, I was hoping that you would be able to assist me with my assignment this week. It is a 700 word memo and the scenario is on the assignment and requirements sheet. Please let me know if you need anything else from me. Thank you. :)
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Explanation & Answer
Hey Sslyfoxx, kindly see attached work. Please tell me if you have any questions. Thank you.
BizCon
6/9/2017
Memorandum
To: BizCon Management
From: Senior Accountant BizCom
CC: Chief Financial Officer BizCom
Subject: Explanation for the positive net income yet shortage in cash.
This is to hereby notify you of a delay in settlement of the employees’ one full month salaries in the
financial year ended. It is possible for the company to record positive net income but fall short on cash.
Though profit and cash flow have a close relationship in accounting, one should not be mistaken for the
other since they are not the same. Profit is a positive balance achieved after expenses are deducted from
the total revenue earned by a given company. BizCon recorded a favorable net income but its closing cash
balance was low and couldn’t cater for further expenses. It was therefore important payment of salaries be
pushed to the first we...