The following figures have been extracted from ABC Company limited accounts for three years to September 2018

Year	2016	2017	2018
Value in	Ksh 000	Ksh 000	Ksh 000
Inventory (Stock)	170	190	200
Accounts receivable (debtors)	370	380	390
Cash and bank	-	20	50
Accounts payable (Creditors)	600	450	400
Bank overdraft	40	-	-

Required

1. Calculate the current ratio for each of the three years
2. Calculate the acid test ratio for each of the three years
3. Comment on the liquidty position of the company for the three years
4. Explain the benefits of setting and monitoring a cash budget