The financial difficulties in 2000 make Citilink understand the importance of financial management. In view of the global financial fragility, Citilink's board of directors would like to take a review on the financial status of the company. As an independent business consultant, you have to write a FORMAL BUSINESS REPORT to the Board to address the following issues:
(a) Identify the sources of short/medium and long term finances available to Citilink now and in near future. You may refer to Appendix I to support your findings, if needed.
(b) Assess the legal, financial, control, and bankruptcy implications of the different sources identified at Task 1(a) above.
(c) Analyse the finance costs of the respective sources of finance, as identified at Task 1(a) above.
Citilink has just completed its 2010/11 management accounts. The directors are going to review the financial statements in the next board meeting. You have to prepare a FINANCIAL REVIEW REPORT for presentation at the board in the capacity of the Finance Director of Citilink. In order to have a critical review, you have collected the financial statements of Grayline, the market leader in the bus transportation industry. All the financial statements are at June 30. The report should cover the following issues:
(a) Discuss the formation of financial statements by introducing debit, credit, books of prime entry, accounts and ledgers, trial balance, final accounts..........