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3. Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000): Income Statement 236 ? ? ² EBIT Interest EBT Income Tax Net Income Assets Current Liabilities Debt Equity Total Liab & Equity Balance Sheet This Year 582 63 275 244 582 Next Year 745 80 ? ? 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. What is ending debt?

3. Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000): Income Statement 236 ? ? ² EBIT Interest EBT Income Tax Net Income Assets Current Liabilities Debt Equity Total Liab & Equity Balance Sheet This Year 582 63 275 244 582 Next Year 745 80 ? ? 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. What is ending debt?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 103.

3. Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000): Income Statement 236 ? ? EBIT Interest EBT Income Tax Net Income Assets Current Liabilities Debt Equity Total Liab & Equity ? ? Balance Sheet This Year 582 63 275 244 582 Next Year 745 80 ? ? 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. What is ending debt?
Transcribed Image Text:3. Lap Dogs Inc. is planning for next year and has the following summarized results so far ($000): Income Statement 236 ? ? EBIT Interest EBT Income Tax Net Income Assets Current Liabilities Debt Equity Total Liab & Equity ? ? Balance Sheet This Year 582 63 275 244 582 Next Year 745 80 ? ? 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. What is ending debt?
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