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The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows: Consolidated Statements of Income For Period Ended (In millions) Net sales Operating income Interest expense Other income (expense), net Noncontrolling interests Earnings before income taxes (Benefit) provision for income taxes Earnings from continuing operations Discontinued operations (net of tax) Net earnings Abbreviated Consolidated (in millions) 2019 2018 2020 $12,586.60 $12,476.88 $10,164.70 680.16 1416.22 1403.61 (331.89) (238.55) 46.54 4.03 (37.83) 1131.26 399.23 732.03 36.40 $768.43 (253.00) (6.80) (20.10) (51.09) 400.26 1079.78 369.72 710.06 0.00 160.16 $404.03 $870.22 (3.77) 404.03 Balance Sheet 2020 2019 $14,382.81 $14,368.38 Total assets Long-term debt 3,770.91 2,002.52 Shareholders' equity 5,091.58 4.525.56 Total liabilities and stockholders' equity $14,382.81 $14,368.38 Note 8-Long-Term Debt and Credit Facilities 2019 (in millions) 5.75% Notes Due 2022 Total long-term debt 2020 $910.00 $3,770.91 S- $2.002.52 Required 1. The company reported that on February 1, 2020, it issued $910 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Par b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $ 26.163 ✓ Note: Round to three decimal places. Use rounded amount in any furth

The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows: Consolidated Statements of Income For Period Ended (In millions) Net sales Operating income Interest expense Other income (expense), net Noncontrolling interests Earnings before income taxes (Benefit) provision for income taxes Earnings from continuing operations Discontinued operations (net of tax) Net earnings Abbreviated Consolidated (in millions) 2019 2018 2020 $12,586.60 $12,476.88 $10,164.70 680.16 1416.22 1403.61 (331.89) (238.55) 46.54 4.03 (37.83) 1131.26 399.23 732.03 36.40 $768.43 (253.00) (6.80) (20.10) (51.09) 400.26 1079.78 369.72 710.06 0.00 160.16 $404.03 $870.22 (3.77) 404.03 Balance Sheet 2020 2019 $14,382.81 $14,368.38 Total assets Long-term debt 3,770.91 2,002.52 Shareholders' equity 5,091.58 4.525.56 Total liabilities and stockholders' equity $14,382.81 $14,368.38 Note 8-Long-Term Debt and Credit Facilities 2019 (in millions) 5.75% Notes Due 2022 Total long-term debt 2020 $910.00 $3,770.91 S- $2.002.52 Required 1. The company reported that on February 1, 2020, it issued $910 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Par b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $ 26.163 ✓ Note: Round to three decimal places. Use rounded amount in any furth

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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Note Valuation. The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows: Consolidated Statements of Income For Period Ended (In millions) Net sales Operating income Interest expense Other income (expense), net Noncontrolling interests Earnings before income taxes (Benefit) provision for income taxes Earnings from continuing operations Discontinued operations (net of tax) Net earnings Abbreviated Consolidated (in millions) 2020 2019 $12,586.60 $12,476.88 680.16 1416.22 2018 $10,164.70 1403.61 (331.89) (238.55) 46.54 (253.00) (6.80) 4.03 (20.10) (51.09) (37.83) 400.26 1079.78 1131.26 399.23 (3.77) 369.72 404.03 710.06 732.03 0.00 160.16 36.40 $404.03 $870.22 $768.43 2020 $910.00 $3,770.91 Balance Sheet 2020 2019 $14,382.81 $14,368.38 Total assets Long-term debt Shareholders' equity Total liabilities and stockholders' equity $14,382.81 $14,368.38 Note 8-Long-Term Debt and Credit Facilities 2019 (in millions) 5.75% Notes Due 2022 Total long-term debt 3,770.91 2,002.52 5,091.58 4,525.56 $- $2,002.52 Required 1. The company reported that on February 1, 2020, it issued $910 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Par b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $ 26.163 c. How much would the company have raised through the sale of the notes if the market rate of interest had been 6% per year? $ 910 Note: Round to three decimal places. Use rounded amount in any further calculations. x million. Note: Use Excel and round to three decimal places.
Transcribed Image Text:Note Valuation. The Hastings Company is a multinational manufacturer of electrical equipment and components. Selected financial information is as follows: Consolidated Statements of Income For Period Ended (In millions) Net sales Operating income Interest expense Other income (expense), net Noncontrolling interests Earnings before income taxes (Benefit) provision for income taxes Earnings from continuing operations Discontinued operations (net of tax) Net earnings Abbreviated Consolidated (in millions) 2020 2019 $12,586.60 $12,476.88 680.16 1416.22 2018 $10,164.70 1403.61 (331.89) (238.55) 46.54 (253.00) (6.80) 4.03 (20.10) (51.09) (37.83) 400.26 1079.78 1131.26 399.23 (3.77) 369.72 404.03 710.06 732.03 0.00 160.16 36.40 $404.03 $870.22 $768.43 2020 $910.00 $3,770.91 Balance Sheet 2020 2019 $14,382.81 $14,368.38 Total assets Long-term debt Shareholders' equity Total liabilities and stockholders' equity $14,382.81 $14,368.38 Note 8-Long-Term Debt and Credit Facilities 2019 (in millions) 5.75% Notes Due 2022 Total long-term debt 3,770.91 2,002.52 5,091.58 4,525.56 $- $2,002.52 Required 1. The company reported that on February 1, 2020, it issued $910 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Par b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $ 26.163 c. How much would the company have raised through the sale of the notes if the market rate of interest had been 6% per year? $ 910 Note: Round to three decimal places. Use rounded amount in any further calculations. x million. Note: Use Excel and round to three decimal places.
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