Assignment
Prepare a Business Letter
The ability to interact and solve problems together - even at a distance - is a key skill in today's business environment. You will demonstrate the ability to solve complex problems by establishing a setting ensuring all members properly complete agreed upon and assigned tasks.
Your has a proprietary Discussion Board area under Unit 3 labeled X Discussion. Your also has a team-specific email group list, and a private synchronous Chat area, if you choose to use them. Teams sometimes use an instant messaging service, such as AIM. Please post your meeting minutes in your Discussion Board area. Setting up a specific time each week to check in may be helpful.
This Assignment will assess your knowledge based on the following outcome:
Contribute to goals and objectives through active participation and collaboration.
You will analyze financial data and present the rationale to deny a loan renewal request. Comparative Balance Sheets and a Cash Flow Statement are used in the analysis.
After review and analysis of the Cash Flow Statement you will prepare a business letter to explicitly explain to the customer your reasoning for denying the loan.
? Each member will be asked to provide their respective analysis of one of the six sections of the team's letter.
? Teams are required to prepare and post meeting minutes to their Discussion Area that will also be submitted with the final Assignment.
AGENDA:
? Determine Project Leadership.
? Determine the specifications, resources, and timelines for the project.
? Determine communication protocol.
? Determine next meeting.
Assignment Instructions
The Assignment requires an analysis of specific financial data of Bob Smith Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2013 the bank required Bob to increase the YE 2014 cash balance to at least $70,000. The Cash Flow Statement and Balance Sheet show an actual YE 2014 cash balance of less than $34,000.
The Assignment requires participation in a effort to complete the (partially prepared) 2014 Cash Flow Statement. In Seminar 1 you discussed how to complete and use the 2014 Cash Flow Statement outcomes to explain how specific accounts influenced Bob's low cash balances...in other words...some reasons why Bob has no cash!
This information allows you to substantiate the 2015 loan denial. You are aware this action will create dire financial circumstances for Bob's company. As the loan officer you must pass along the news in a business letter that is most professional and written in an objective manner. Please use values in the letter whenever possible.
The documents for this project will be reviewed in Seminar 1 and the Assignment will be due by the end of Unit 3. Requirements
This project includes data for the a) comparative Balance Sheets, b) partially completed Cash Flow Statement worksheet and, c) the template outline of the loan denial letter. Each document will be reviewed in the Week 1 Seminar.
You will locate the comparative Balance Sheets and Cash Flow Statement worksheet inthe Assignment Worksheets file.
Use the template outline to prepare the business letter.
Criteria for Meeting Minutes
Meeting Minutes must include each members name, date, and notes of the discussions. Minutes to the meetings will be submitted on the same document after your business letter.
Directions for submitting your Assignment
Prepare your Assignment in a minimum of 2 double-spaced pages in length, using size 12 point font in Microsoft Word format. At the end of your paper, add the meeting minutes. Name the file as: MT480 Business Letter X. One member will submit the Assignment to the Unit.
Assignment Outline
Business Letter: Bank Loan Review
Your loan request was presented to the bank's loan committee. The outcome of the committee's vote resulted in a non-renewal of the loan. The loan committee focused on the following issues...Students completes the following...
1.... summarize...focus on "the" one account that significantly "reduced" cash balances. Explain to Bob how this one account could be the main reason the required $70,000 cash balance was not maintained.
2...explain...note two other accounts that dramatically reduced cash flow/growth and are of particular concern to you. Express an idea that might immediately improve this matter.
3...recognize...a couple of accounts that did increase cash flow. Make a specific note to Bob regarding how and why these accounts lead to inflows of cash;
4...explain...to Bob three actions that would continually increase cash flow and "correct the situation." Explain that you look forward to meeting again in the 6 months in hopes of a loan approval.
Regards,
Bank Loan Review Team
(List all participating members)
Attachment:- Team-Worksheets.rar