Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000):

Question:

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 ............?

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.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...