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20150502233156essay Revised

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Business Writing assignment: Cash Flow Crisis
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Executive Summary
The following is a report from the Southern Pharmaceuticals chief Account to the
management of the company. Southern Pharmaceutical primarily deals with sales of human
medicine. The report acknowledges in detail a looming crisis on the company’s cash flow. The
report clearly defines the problem as a cash flow problem. This is lack of sufficient funds by the
organization to meet their running expenses. The causes of the cash flow problem include; Poor
debt collection, reduced sales and overinvestment as well a high running cost. The Report goes
into detail on how these elements’ have contributed to the current situation faced by the
company. Some of the effects attributed to this problem such as; not meeting the company’s
financial obligations, ruining relationships between employees, customers and suppliers are also
emphasized by the report. The Report concludes by providing significant solutions to the
problem like; cutting back on cost, renegotiating terms with suppliers and even considering an
additional bank loan. The report is conclusive as supported by other key departments in the
Southern Pharmaceuticals Company. The suggestions will apply a more coordinated solution to
the current cash flow crisis if adopted by the management.

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Business Writing assignment: Cash Flow Crisis Name Institution Executive Summary The following is a report from the Southern Pharmaceuticals chief Account to the management of the company. Southern Pharmaceutical primarily deals with sales of human medicine. The report acknowledges in detail a looming crisis on the company’s cash flow. The report clearly defines the problem as a cash flow problem. This is lack of sufficient funds by the organization to meet their running expenses. The causes of the cash flow problem include; Poor debt collection, reduced sales and overinvestment as well a high running cost. The Report goes into detail on how these elements’ have contributed to the current situation faced by the company. Some of the effects attributed to this problem such as; not meeting the company’s financial obligations, ruining relationships between employees, customers and suppliers are also emphasized by the report. The Report concludes by providing significant solutions to the problem like; cutting back on cost, renegotiating terms with suppliers and even considering an additional bank loan. The report is conclusive as supported by other key departments in the Southern Pharmaceuticals Company. The suggestions will apply a more coordinated solution to the current cash flow crisis if adopted by the management. Transmittal Letter To: The Managing Director Southern Pharmaceuticals From: Chief Accountant Southern Pharmaceuticals Date: 21st April 2015. Re: Cash flow ...
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