ocr: Points to Note from The Studio Question 1.The company forecasts a cash balance of £1,000 at the end of April and will not therefore be able to: repay the bank its loan of £10,000. This could easily persuade the bank to "pull the plug" on Novem. House and thereby force them into the hands of the: receivers so. as to: salvage as much of their money as possible from the. assets of the business. 2.1 In the early months of trading (January and February), where the company if paying for purchases at a quicker rate than it IS receiving sales revenue, it experiences negative net cash flows. Indeed, by ...
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