SOLUTION: 3. Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000): Income Statement EBIT 236 Interest ? EBT ? Income ta

Question 740498: 3.
Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000):
Income Statement
EBIT
236
Interest
?
EBT
?
Income tax
?
EAT
?
Balance Sheet
This year
Next Year
Assets
582
745
Current liabilities
63
80
Debt
275
?
Equity
244
?
Total liab & equity
582
745
The Firm pays interest of 12% on all borrowing and is subject to an overall tax rate of 38%. It paid interest of $20,000 this year and plans a $75,000 dividend next year. Complete Lap Dog�s forecast of next year�s financial statements. Round all calculations to the nearest $1,000.

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