The managing director of Pumpkin Ltd was reviewing the results of the common for the financial year ended 31 March 200. The following summarised information was 150.000 100 000 Balance as at 1 April 20x3 issued ordinary share capital 1 fully paid shares Share premium account Balance of retained earnings Balances as at 31 March 2006 Net profit for year 2015 Fixed assets Bank overdraft Othernet currentes 00000 1500 210.000 e d Note: There were no other accounts with balances. The balanss Art 2005 had unchanged throughout the year The managing director was pleased that the company had made a good o ut he concerned that a healthy bank balance at the beginning of the year had w a l r k for Consequently the sked the com e to prepare forector order that the cash situation could be improved The following information was prepared by the count 1 Company sales - March 200 Cash ales Credit sales 5.000 In each month April to September inclusive the sales per month would be Cash sales Credit sales . 70.000 All credit sales are tied the month after the sale 2 All goods purchased are from a single supplier. The goods are purchased on credit and each month's purchases are paid for three months after the month of purchase The following purchase schedule had been prepared for the first months of 200 January February Purchases 250,000 1.000 1.000 Purchases in April May and June 55.000 in each month Purchases in July August and September 45,000 in each month Note: The company had successfully negotiated lower prices from its super commanding 2OXO of nandalye 3 Dividends would be paid as follows: 0) Final ordinary dividend of sp per share payable on 31 May 20in 20 interim ordinary dividend of 20 per share payable on 1 200 in 20xx Selling and distribution expenses are expected to be percent of age They are paid one month in arrears of financial alle 5 Administration charges would be incurred as follows 2010 February March April 10,000 per month 2010 May to September inclusive 10 month Administration charges are settled two months after the month in which they were incurred The company had decided to make a bonuse of shares of one share for every held. The I would be made on 20 April 2000. The bonus shares would not for the final vided of 200 , but would quality for the interim dividend to be paid on 31 2 00 Comment on the liquidity of the company a t 31 March 2010 and into the managing director why a company can apparently make a good profit but have no cash in the bank Prepare a cach budget for each of the four months ending 31 July 200 Comment on the forecast bank balance as shown by your cash budget. Identify ways in which the bank overdraft could be reduced over the last five months of 20KO The managing director of Pumpkin Ltd was reviewing the results of the common for the financial year ended 31 March 200. The following summarised information was 150.000 100 000 Balance as at 1 April 20x3 issued ordinary share capital 1 fully paid shares Share premium account Balance of retained earnings Balances as at 31 March 2006 Net profit for year 2015 Fixed assets Bank overdraft Othernet currentes 00000 1500 210.000 e d Note: There were no other accounts with balances. The balanss Art 2005 had unchanged throughout the year The managing director was pleased that the company had made a good o ut he concerned that a healthy bank balance at the beginning of the year had w a l r k for Consequently the sked the com e to prepare forector order that the cash situation could be improved The following information was prepared by the count 1 Company sales - March 200 Cash ales Credit sales 5.000 In each month April to September inclusive the sales per month would be Cash sales Credit sales . 70.000 All credit sales are tied the month after the sale 2 All goods purchased are from a single supplier. The goods are purchased on credit and each month's purchases are paid for three months after the month of purchase The following purchase schedule had been prepared for the first months of 200 January February Purchases 250,000 1.000 1.000 Purchases in April May and June 55.000 in each month Purchases in July August and September 45,000 in each month Note: The company had successfully negotiated lower prices from its super commanding 2OXO of nandalye 3 Dividends would be paid as follows: 0) Final ordinary dividend of sp per share payable on 31 May 20in 20 interim ordinary dividend of 20 per share payable on 1 200 in 20xx Selling and distribution expenses are expected to be percent of age They are paid one month in arrears of financial alle 5 Administration charges would be incurred as follows 2010 February March April 10,000 per month 2010 May to September inclusive 10 month Administration charges are settled two months after the month in which they were incurred The company had decided to make a bonuse of shares of one share for every held. The I would be made on 20 April 2000. The bonus shares would not for the final vided of 200 , but would quality for the interim dividend to be paid on 31 2 00 Comment on the liquidity of the company a t 31 March 2010 and into the managing director why a company can apparently make a good profit but have no cash in the bank Prepare a cach budget for each of the four months ending 31 July 200 Comment on the forecast bank balance as shown by your cash budget. Identify ways in which the bank overdraft could be reduced over the last five months of 20KO