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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

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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).

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