Following a particularly stormy board meeting several of the directors are having a private conversation, on the following lines:

(i ) The sales director says, ‘I think someone has been stealing cash. We have been making reasonable profits but we now have a bank overdraft. Surely that’s impossible.’

(ii ) The production director says, ‘I don’t think we should charge anything for depreciation this year. The machinery is in perfect condition because we have spent a lot of money on maintenance.’

(iii ) ‘I am stuck with a lot of outdated and unusable computer equipment,’ says the director of administration. ‘However, the accountant won’t let me scrap it as it still has a lot of book value.’

(iv) ‘We badly need a new warehouse,’ says the merchandising director. ‘We have got over £2 million in our general reserve. We should take the cash out of that to buy a new warehouse.’

Comment on each of these statements.