AC298 · Unit 8

AC298 Unit 8 recommendation memo example

Associate's Capstone in Accounting Purdue University Global Free custom sample in 24 to 48h

Nothing about the store's finances enters the finished AC298 Unit 8 memo unless it was already submitted in an earlier stage. A painting contractor asks for 60-day terms on a large account, and the model advises a smaller limit on the existing 30-day terms instead, tracing every supporting number to the statements or the ratio analysis by its reference.

What this page holds

Recommendation first, arithmetic second: the AC298 Unit 8 memo shown here tells an owner what to do about one credit request and proves it with figures already on file. Searches like "ac 298 unit 8 assignment example", "ac298 unit 8 sample" and "ac298 unit 8 example" land here.

What a finished AC298 Unit 8 recommendation memo looks like

Two pages in standard memo format, with a subject line that states the decision. Its opening paragraph delivers the recommendation in two sentences: extend credit to the contractor at 30 days with a $6,000 limit and a deposit on the first order, and revisit longer terms once collection time falls below 35 days. A short evidence section follows with three findings, each carrying its reference number: receivables already average 41 days against 30-day terms, the quick ratio of 0.7 leaves little cash cover, and times interest earned at 3.2 means borrowing to carry receivables would bite. A worked estimate shows the cash tied up under the contractor's request. A paragraph on the risk of saying no, the lost margin on the account, precedes two dated actions, each assigned to someone.

How a AC298 Unit 8 example is structured

The memo puts its answer at the top because an owner reads the first paragraph and may stop there. Evidence comes next, limited to three findings so each can be checked against the earlier submissions in a moment; the reference numbers let a grader go straight from memo to ratio to statement line. The worked estimate turns the contractor's request into cash: 60-day terms on roughly $15,000 of monthly purchases would hold about $30,000 in receivables at any time, more than the store's cash balance. Alternatives are then set side by side, accepting as requested, accepting with limits, and declining, each with its effect on cash and margin. The recommendation's risk paragraph admits what the advice gives up. The close lists actions in the order they would happen, and a short appendix reproduces the reference entries the memo relies on.

The answer in the first paragraph

The owner learns the recommendation, the limit and the condition for revisiting it before reading any evidence, the order a busy decision-maker needs.

Three findings, each referenced

Collection days, the quick ratio and interest coverage carry reference numbers back to the ratio analysis, so the memo cannot quietly disagree with it.

The request converted to cash

Sixty-day terms become a receivables balance the store would carry every month, compared with the cash it actually holds, which makes the risk concrete.

Declining costs something too

The memo estimates the gross margin a lost contractor account would take with it, so the owner sees both sides of the decision in dollars.

Actions with a sequence

A credit application and deposit come first, a limit review after two clean payment cycles second, each assigned and timed.

Where marks go in AC298 Unit 8

Advice unsupported by any calculation costs the most, a memo that recommends caution because the business seems stretched without showing a single figure. Figures that disagree with earlier submissions are the second major loss, and graders look for them, since the capstone's premise is that the memo, the ratios and the statements describe one company. New numbers introduced without a source, such as an industry average nobody supplied, lose credibility points in many sections. A recommendation buried in the last paragraph misses the memo convention. Ignoring the cost of declining makes the advice look one-sided and tends to lose analysis credit. Wrong format, a missing subject line, and a memo that repeats the full ratio table instead of citing the few results that matter account for the smaller deductions.

Get a AC298 Unit 8 example written to your instructions

Describe the decision your owner or manager faces, attach the statements and ratios you have already submitted, and include the Unit 8 prompt and rubric. Built only on those figures, a free first memo is back in 24-48h with each number referenced to its source. Nothing outside your record is added unless the prompt itself supplies it.

AC298 Unit 8 questions, answered

Can the memo use figures that were not in my earlier submissions?

Only figures the prompt itself supplies, such as the size of the request being evaluated. Everything about the business's own position should come from the statements and ratios already submitted, cited by reference. If an earlier figure was wrong, correct it openly in both places rather than quietly using a different number in the memo.

How long should a recommendation memo be?

One to two pages is typical, and shorter is often stronger. The recommendation fits in the first paragraph, three findings carry the evidence, and one worked estimate makes the key risk concrete. Anything beyond that usually belongs in an appendix. Owners read memos to decide, and a memo that reads like an essay is often marked as the wrong format.

Should the memo recommend what the owner wants to hear?

It should recommend what the figures support and say so plainly, including when that disappoints. The sample softens delivery, not substance: it offers a limited yes rather than a flat no, and it names the condition under which longer terms would make sense. Advice that follows the owner's preference against the numbers usually loses analysis credit.