How do I explain to Findlay Laboratories, Inc. the principals and purpose of collecting the overdue funds owed to Sequoia Medical Supply, Inc. in business letter form.

Additional Info:

Corporate Cash Flow. Sequoia Medical Supply is a mid-size firm with US$18.5 million in annual sales. Disposable medical supplies, including glass and polystyrene containers, syringes, tubing, catheters, tape, and specialty-packaged items account for about two-thirds of sales. Non-invasive diagnostic equipment, monitors, analyzers, OR equipment, and examining room equipment comprise the remaining third of sales. Receivables. The amount past due from Findlay Laboratories represents 80% of all past due receivables. Currently, about 95% of the firm's receivables are current. Ratios & Formulas. To give you some perspective on the amount of persuasion that may be needed in this case, you may wish to look at several totals and their attendant ratios, including accounts receivable, receivables past due, and receivables turnover. Accounts Receivable Past Due: 100% / 80% x Findlay Lab Account Past Due. Total Annual A/R: 100% / 05% x A/R Amount Past Due. Total (unaveraged) A/R turnover: Total Annual Sales / Total Annual A/R.

Key facts:

Amount past due from Findlay Laboratories is 80% of all past due receivables. At this time, 95% of the firm's receivables are current. Findlay made a payment of $46,250.00 on a balance of $122,533.40 in February. The amount owed is $94,855.20.