Write a negative news message using a memo format on the scenario below. Begin with a factual buffer, provide evidence of financial difficulty, leading to the bad news that payroll must be reduced for the company to remain solvent.

The Scenario:

You are a part$-$time accountant for a small local retail company. You provide Patricia Zho, the owner of the company, with quarterly reports summarizing her income and expenses. Together you determine a budget and compare it to actual data to help make important decisions such as ordering merchandise and providing raises. After two years of continual losses and sales you believe Patricia must reduce her payroll she has consistently refused to consider the suggestion in the past stating that her employees are like family and she cannot reduce their wages or fire anyone. She'd rather go out of business. At this point the data are telling you that she will have to close her door if she does not reduce payroll. Twenty$-$five people are on the payroll averaging $$35,000$ a year each. Sales continue to decline. Inventory costs her $40\%$ of the sales price.