Bullet forms answer please. will give good review

You are required to evaluate the following statements made by the chairman of an organization, who is from a non-finance background: (a) 'I don't see why we must prepare budgets. After all, the business environment is uncertain. (20 marks) (b) 'I don't see the point of preparing a statement of cash flows. The income statement already shows whether our business is profitable or not. So long as we are profitable, there should not be any liquidity issues.' (20 marks)