a) We made a profit of $170,000, so why is there only $4,500 in the bank?, exclaimed Mr Greasy, the owner of the local Fish and Chip shop. Explain to Mr Greasy the relationship between profit and cash flow to help him understand the reason why there is such a big difference between profit and cash in the bank.

b) Explain the difference between a business transaction and a business event. Use examples to illustrate this difference