1) Write down two elements of financial planning process?( it is cash planning and profit planning) Why is cash planning as very important as profit planning? and give suitable example where cash flow and profits did not go hand and hand.

2) Describe operation of a bank. Why can banks function with so much more leverage (so much less equity capital) than ordinary business? Study the financial statements of one of the big 3 banks incorporated in singapore. Calculate leverage ratio for any of these 3 main banks (DBS,OCBC,and OUB). Evaluate this with leverage ratio for any large American or European bank which ranks among 50 largest banks in world. How would you describe the difference?