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Transcription of this question: 2.Gemel LtdGeorge Melly started a new business in January 2008. He set the firm up as a private limited company,Gemel Ltd. George took a majority 80% shareholding in the business and appointed himself asChief Executive Officer. His accountant, Peter Mears, joined George buying the remaining shares.TO finance the launch, George estimated a figure Of $300 000. He produced a business plan andforecast financial information as part Of the process Of obtaining most Of the required finance(see table below). George presented this financial information to Peter Mears.Peter examined the figures and pointed out that George had omitted a provision for depreciation Ofthe firm’s fixed assets, which were valued at $200 000 on start-up. He suggested that George workedon the basis Of a four-year life for the assets and estimated a scrap value Of S40000.Forecast financial information for Gemel Ltd for the years 2008 and 20092008 (SOOO)2009 (SOOO)TurnoverCost of salesEx ensesNon-o eratinInterestTaxDividendsIncome485245911120356087045013813556075(a)(b)(c)Using straight-line depreciation, calculate the annual provision for depreciationthat George had omitted. (Show all your working)Using the financial information provided for 2008 and 2009, prepare profit andloss accounts for the two years, adjusting the figures in the table above to includethe provision for depreciation and re-calculating the tax payment to equal 25 %Of net profit before tax.Evaluate potential sources Of finance for a small business like Gemel Ltd to fundthe purchase Of the following:(i)(ii)(iii)stocks of finished goods for resaledelivery vansland and buildings.[2 marks][8 marks][l O marks]

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