Question
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
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 Gross profit Salaries Rent Other operating expenses Operating Income Dividends received Interest paid Earnings before tax Tax charge Net income Dividends payable Retained Earnings (25000.00) 35000.00 (5000.00) www (2400.00) 20000.00 (4000.00) 25000.00 www b. Create a vertical common size income statement for Pembe Ltd for year 2015 (7 marks).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started