Problem 109 The management director of Pumpkin Ltd was reviewing the results of the company for the financial year ended 31 March 19X0. The following summarized information was available: Balances as at 1 April 19X9 Issued ordinary share capital: 1 fully paid shares Share premium account Balance of retained earnings 150,000 100,000 40,000 Balances as at 31 March 19X0 Net profit for the year 19X9/XO Fixed assets Bank overdraft Other net current assets 70,0000 300,000 150,000 210,000 Note: There were no other accounts with balances. The balances as at 1 April 19X9 had remained unchanged throughout the year. The management director was pleased that the company had made a good profit, but he was rather concerned that a healthy bank balance at the beginning of the year had now become a large bank overdraft. Consequently he asked the company accountant to prepare forecast information for 19XO/XI in order that the cash situation could be improved The following information was prepared by the accountant: (1) Company sales - March 19X0 Problem 109 The management director of Pumpkin Ltd was reviewing the results of the company for the financial year ended 31 March 19X0. The following summarized information was available: Balances as at 1 April 19X9 Issued ordinary share capital: 1 fully paid shares Share premium account Balance of retained earnings 150,000 100,000 40,000 Balances as at 31 March 19X0 Net profit for the year 19X9/XO Fixed assets Bank overdraft Other net current assets 70,0000 300,000 150,000 210,000 Note: There were no other accounts with balances. The balances as at 1 April 19X9 had remained unchanged throughout the year. The management director was pleased that the company had made a good profit, but he was rather concerned that a healthy bank balance at the beginning of the year had now become a large bank overdraft. Consequently he asked the company accountant to prepare forecast information for 19XO/XI in order that the cash situation could be improved The following information was prepared by the accountant: (1) Company sales - March 19X0