7 Below is an income statement for Pembe Ltd as at 31/12/2015. In addition to the information provided, we know that: i. The firm's tax rate is 32% ii. The firm's dividend policy is to pay out 43% of net profit as dividends a. Fill in the blank spaces (7 marks) Pembe Ltd: Income Statement as at 31/12/2015 Revenue Cost of goods sold (25000.00) Gross profit 35000.00 Salaries (5000.00) Rent Other operating expenses (2400.00) Operating Income 20000.00 Dividends received Interest paid (4000.00) Earnings before tax 25000.00 Tax charge Net income Dividends payable Retained Earnings b. Create a vertical common size income statement for Pembe Ltd for year 2015 (7 marks). c. If the industry in which Pembe Ltd competes has these average profitability ratios: i. Gross Profit margin -50% ii. Operating profit margin -28% iii. Net profit margin -10%, State whether the firm is better off or worse off than the industry as pertains its profitability ratios with respect to industry averages. (3 marks) Assuming you were a financial analyst analyzing Pembe Ltd, would you recommend its shares to your clients? State the reason for your