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Lap Dogs Inc. is planning for next year and has the summarized results given below. The firm pays interest of 13% on all borrowing and
Lap Dogs Inc. is planning for next year and has the summarized results given below.
The firm pays interest of 13% on all borrowing and is subject to an overall tax rate of 40%. It paid interest of $10,000 this year and plans a $80,000 dividend next year. Complete Lap Dog's forecast of next year's financial statements. Enter your answers in thousands. For example, an answer of $12 thousands should be entered as 12, not 12,000. Enter all amounts as a positive numbers.
Income Statement ($000) | |
EBIT | $217 |
Interest | |
EBT | $ |
Income Tax | |
Net Income | $ |
Balance Sheet ($000) | ||
This Year | Next Year | |
Assets | $598 | $750 |
Current Liabilities | 70 | 80 |
Debt | 300 | |
Equity | 228 | |
Total Liab & Equity | $598 | $750 |
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