Effective Writing 10th Edition by Claire May,Gordon May

Exercise 3

Your boss, John Creedy, is a partner in the small local CPA firm for which you work. One morning a client, Jeff Altman, the owner of Altman Manufacturing, storms into Mr. Creedy's office and delivers a complaint. An edited version follows:
This morning at my breakfast club I spoke with my competitor, Tony Dodd. He uses the LIFO inventory method just as I do. He boasted that his accountant had told him that by speeding up his purchases of raw materials at year-end he could significantly increase reported profits. If he can do that, why can't I? And why haven't you discussed this gimmick with me? I don't expect to rely on Dodd for financial advice; I pay you for that.
After Altman's departure, Mr. Creedy calls you, the accountant-in-charge of the Altman account, into his office to discuss Mr. Altman's complaint. You explain to your boss that your concern is your client's very large raw material inventory and slow turnover rate caused by years of over-buying. Mr. Creedy advises you that Mr. Altman needs new capital in his business and is trying to interest another local businessperson in becoming a limited partner. An increase in reported profits could be advantageous to Mr. Altman's plans. Therefore, left to his own devices, Mr. Altman would likely follow Mr. Dodd's accountant's advice.
Mr. Creedy asks you to draft a letter to Mr. Altman. The letter should provide a discussion of the problems of maintaining an overly large inventory as well as the disadvantage of a low turnover rate. Although you are not familiar with Mr. Dodd's company, you are reasonably certain his accountant would not have made the comment he did if Mr. Dodd's company had the same existing inventory problems as Altman Manufacturing. Use the proper format, effective organization, and appropriate style for your letter. Invent any information you feel is necessary to make your letter complete.