Consider the following independent situations: A. Laura Prebble, the owner-manager of a small business, had carefully monitored her cash position over the past financial year, and was pleased to note at the end of the year that the cash position was strong, and had shown a healthy 50% increase over the year. When presented with the income statement for the year, she was dismayed to note that the profit earned in the last year had deteriorated significantly and had become a loss for the current period. In her anger, she accuses you of having made errors in the accounting since 'such a silly situation could not possibly exist'. REQUIRED: Draft a response to Laura. B. Wayne Deng is reviewing the statement of cash flows for his technology business. The statement has been provided by his accountant. He is dismayed that the statement shows net cash outflows for investing activities. REQUIRED: Discuss if Wayne should be concerned by this. C. After calculating the current ratio for an entity and finding that the ratio's value was 5:1, a student analyst decided that the company was in a sound position for paying its liquid liabilities. REQUIRED: Discuss the shortcomings of making such a conclusion