At the end of the fiscal year, Sarah, the chief financial officer, had a difficult task. The company was deeply in the red, and she had to present the bad news to the board. The bean counters had been working for weeks to balance the books, but the final bottom line was clear: the new product line was a failure. Sarah knew she had to recommend a plan to cut their losses and hopefully break even by the next quarter.
1. What was the company's financial situation?
2. Who was working to balance the books?
1. The government had to provide a massive loan to the bank, which is now
.
2. It was a bad investment, so the company decided to
the entire loss.