after attending a recent finance seminar, you were asked by some colleagues to explain some terms used in the finance director's presentation. having only recently completed your module in accounting you have decided to draft some notes before you explain the terms to your colleagues.

a. please explain what each of these financial statements tells the reader about the financial positions of a company:

1. statement of financial position (balance sheet)
2. income statement
3. cash flow statement

b. explain why effective cash management is considered more vital for businesses than earning profits