Question 4 You are auditing the financial statements of Pumpkin Co for the year ended 31 March 20X9. Pumpkin Co is a chain of bakeries operating in 5 locations. The bakeries sell a range of cakes, pastries, bread, sandwiches, pasties and drinks which customers purchase in cash. The company has had a 'challenging' year, according to its directors, and is renegotiating its bank overdraft facility with its bank. The income statement for the year ended 31 March 20X8 is shown below together with the draft income statement for the year ended 31 March 20X9. Pumpkin Co: income statements Revenue Cost of sales Gross profit Operating expenses AdministrationSelling and distribution Interest payable Profit/(loss) before tax 31 March 20X9 $000 4,205 (1,376) 2,829 (667) (423) (50) 1,689 31 March 20X8 $000 3,764 (1,555) 2,209