Case Study Sources
Go to the following sites and download the information for Part A:
Source 1: CSL Annual report 2019/20
https://www.csl.com/-/media/csl/documents/annual-report-docs/csl-ltd-annual-report-2020-full.pdf
Source 2: Report summary 2019/20
https://medialib.csl.com/-/media/shared/documents/results/2020-fy-announcement.pdf?la=en-us&hash=6DC4210B71BD961AE0BD0E1514EE02E2FFAD9328
Source 3: Yahoo finance CSL historical share and dividend data
https://au.finance.yahoo.com/quote/csl.ax?ltr=1
a) The role of the Board of a company is to govern the company to increase shareholder (owners’) value. This means that they often have systems that align manager and shareholder interests. b) Based on the Note 11d which type of non-interest-bearing debt is CSL primarily using to finance its operations? What are the risks and benefits of using this type of financing? (4 marks, LO2)
c) CSL report all its economic activities in monetary terms. In which currency does CSL report all its transactions? How could exchange rates affect the financial position and performance and CSL’s financial statements. (3 marks, LO2)
d) Explain whether CSL prepare Special Purpose Financial Reports or General-Purpose Financial Reports.
e) Which expenses on the Income Statement would be regarded as variable. How can managers use this control controls its budgets? (3 marks, LO3)
f) How has CSL’s ability to manage inventory changed from 2019 and 2020? Show using calculations. Why is managing appropriate inventory a challenge for firms? (6 marks, LO2)
g) Find the closing price for the share price on October 16, 2020. How would investors feel about the value of their shares in CSL, if they purchased shares on the 17 February 2020? What if they had purchased the shares on 30th October 2019? What do these values suggest about risks of investing in the Share market and what would you recommend a potential investor? (8 marks, LO3)
