Question 4 The management have received a set of interim financial statements, covering the past six months. The Income Statement shows that the profit is much higher than the budget. In fact, it was nearly double last year's profit. However, the Balance Sheet shows that the bank overdraft has increased significantly (a) Discuss the possible causes of this situation and suggest ways in which the liquidity problem can be resolved. (b) Discuss the information that would be available to the management if the accountant had prepared a typical Cash Flow Statement/. (c) As financial advisor to this company, you have asked the accountant to prepare a monthly cash budget for the next three months. Prepare an example of a cash budget that will ensure that the cash is monitored more effectively in the future. Use any figures in your example to show the accountant what is required