6. The following balances and other information were taken from the books of Serve-Me-Well Ltd. on November 30, 2008 AFTER the Trading and Profit and Loss Accounts had been prepared: Authorized Share Capital 260 000 ordinary shares at $1 each 70.000 preference shares of 7% at $2 each Ordinary share capital - fully paid 7% Preference share capital - fully paid General reserve Utilities owing Bank Debtors and creditors Debit $ Credit S 200 000 120 000 40 000 5 000 12 000 40 000 25 000 Premises at cost 320 000 Net profit for year ended November 30, 2008 150 000 Machinery and plant at cost 180 000 Provision for depreciation on machinery and plant 36.000 Inventory 45 000 Insurance prepaid 3.000 588 000 588 000 The directors of Serve-Me-Well Ltd. have recommended the following: 1. A transfer of $20 000 to general reserve 2. An ordinary dividend of 30% 3. The payment of the year's preference dividend Required: (a) (b) Prepare the Profit and Loss Appropriation Account for Serve-Me-Well Ltd. for the year ended November 30, 2008. (5 marks) Prepare a Classified Balance Sheet in vertical style for Serve-me-Well Ltd, as at November 30, 2008. (c) (i) (ii) (13 marks) State what a negative working capital indicates about the financial position of a business. (1 mark) Identify ONE method, other than issuing shares, which Serve-Me-Well could have used to finance the business. ( 1 mark)