Thecompany should opt for the equity financing option. Given theposition of financial position of the company, the management aims atlow interest rates and the self-financing would mean that SunsTrackshould part with 50% of its profits which would inconvenienceshareholders and other stake holders.
STEP2: ACCOUNTING CYCLE
Thejunior accountant after preparing the financial statements shouldclose the accounts then post the closing trial balance. That willhelp them identify any errors made in the financial statements.
STEP3: FINANCIAL STATEMENTS
Thecorrect financial statement to be given to the potential investor isthe balance sheet since it shows the assets, liabilities,stockholder’s equity and the debts of a company (Filzen& Peterson 2015).
Filzen,J. J., & Peterson, K. (2015) Financial Statement Complexity andMeeting Analysts` Expectations Contemporary Accounting Research,32(4), 1560-1594. doi:10.1111/1911-3846.1213