Communication and the Audience - Assignment Example

Communication and the Audience al Affiliation Memo for: Mr. Mark Brown, Sales Manager Ms. Beth Smith, Staff AccountantSubject: Results of the Review of JJJ’s financialDate: August 10, 2014In view of the recent review undertaken by the Accounting Team, please be advised that the following concerns were noted in terms of the results of the review on JJJ’s financial performance:JJJ exhibited financial losses in the last two years of its organizational performance;Financial figures indicate that the organization is cash strapped and thus, its liquidity position is drastically compromised;Due to the inability of JJJ to deliver products and services to its wide range of clientele, most of its consumers have opted to patronize the products of its major competitor, KKK organization with as much as 10% of its market share relegated to KKK;Although the sales figures for JJJ seems to be optimistic, the inability of the organization to minimize costs contribute to the financial losses;Costs that were not effectively managed and contained included interest expense and advertising expense.

These expenses indicate that JJJ had obtained a large financial loan which the organization pays within the next two years. Likewise, efforts to regain their market share contributed to the large budget for advertisements.Given that there are no significant prospects for growth for the organization, and due to the declining market share; in conjunction with increasing interest rates, it is hereby recommended that Riordan Manufacturing should not go through with the planned acquisition of JJJ.

For your further review and appropriate action.Email to: Ms. Evelyn Kruger, Accounting Peer (evelynkruger@abccompany)From: Ms. Beth Smith, Staff Accountant (bethsmith@abccompany)Subject: Advisory on the Status of the Due Diligence Investigation-------------------------------------------------------------------------------------------------------------------The due diligence investigation of JJJ has recently been completed and the following results are hereby relayed for the accounting team’s information and guidance:Two year’s losses has been exhibited by JJJ in the past two years’ income and loss statements;Losses were due from significant interest expenses and advertising expenses;Financial loan of as a much as $3.

0 million has been contracted by JJJ with XYZ bank two years ago;The loan would be fully paid within two years;Although sales seems to be robust, a more in-depth examination of increases in revenues were due to the increase in prices of their products; rather than growth in sales volume;Market share has actually declined since customers patronize the products of its major competitor, KKK, due to lower prices of the products of similar quality.JJJ is also cash strapped due to the large financial obligation.

Due to the financial instability of JJJ, recommendations not to go through with the acquisition has been relayed to the Sales Manager, Mr. Mark Brown.For your information and guidance.