Problem 4-3

Lap Dogs Inc. is planning for next year and has the summarized results given below.

The firm pays interest of 11% on all borrowing and is subject to an overall tax rate of 37%. It paid interest of $25,000 this year and plans a $70,000 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	$203
Interest	fill in the blank 1
EBT	$ fill in the blank 2
Income Tax	fill in the blank 3
Net Income	$ fill in the blank 4

	Balance Sheet ($000)
	This Year	Next Year
Assets	$525	$743
Current Liabilities	63	90
Debt	260	fill in the blank 5
Equity	202	fill in the blank 6
Total Liab & Equity	$525	$743