The following financial information relate to Lang Industrial Systems Inc. and as a financialanalyst you are required to assist with the following problems:AssetsCurrent AssetsCashAccountsReceivableInventoryTotal CurrentAssetsFixed AssetsProperty, Plant,and EquipmentLessAccumulatedDepreciationNet FixedAssetsTotal AssetsBalance Sheet ($ in Millions)2022 2021540820550950174776400Total CurrentLiabilities1910 1400 Long-TermLiabilitiesLong-TermDebtTotal Long-Term LiabilitiesOwners' Equity2686600400800100700Liabilities and 2022 2021Owners' Equity2100CurrentLiabilitiesAccountsPayableNotes PayableCommon Stock($1 Par)RetainedEarningsTotal Owners'EquityTotal Liab. andOwners' Equity1120 8104601580431431340335675268637011804404403101704802100Income Statement ($ in Millions)2022SalesCost of Goods SoldAdministrative ExpensesDepreciationEarnings Before Interestand TaxesInterest ExpenseTaxable incomeTaxesNet IncomeDividendsAddition to RetainedEarnings110070010074226301961518116165 Part AUtilize the 2022 financial statements for Lang Industrial Systems Inc. provided on page 2 andassume that the company is currently operating at below operating capacity.Sales are forecasted to increase by 18% and current assets, costs, and accounts payable areexpected to vary by the same amount.The tax rate and dividend payout ratio will remain constant.Depreciation and Interest Expense will remain unchanged.Required:a) Prepare the pro forma Income Statement and Balance Sheet for 2023. Round all proforma figures to the nearest whole number.b) Based on your computations in (a) above, is external financing needed or does thecompany have excess financing? If so, by how much and what options does it have?Part BLang Industrial Systems Inc. is considering raising financing through a bond offering. Details ofthe proposed bond offering are provided below:Coupon Rate:8%Time to Maturity:15 yearsFrequency of interest payments: QuarterlyRequired: Given a current yield to maturity of 5.12%, how much should an investor be willing topay for $1,000 face value of this bond?

WN No. Particulars Amount ($) 1 Rate of Tax A) Taxable Income of 2022 196…

The following financial information relate to Lang Industrial Systems Inc. and as a financial analyst you are required to assist with the following problems: Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant, and Equipment Less Accumulated Depreciation Net Fixed Assets Total Assets Balance Sheet ($ in Millions) 2022 2021 540 820 550 950 174 400 776 600 Total Current Liabilities 1910 1400 Long-Term Liabilities Long-Term 400 800 100 Liabilities and 2022 Owners' Equity 700 Current Liabilities Accounts Payable Notes Payable Debt Total Long- Term Liabilities Owners' Equity Common Stock ($1 Par) Retained Earnings Total Owners' Equity 2686 2100 Total Liab. and Owners' Equity 1120 810 460 1580 431 431 340 335 675 2021 2686 370 1180 440 440 310 170 480 2100 Income Statement ($ in Millions) 2022 Sales Cost of Goods Sold Administrative Expenses Depreciation Earnings Before Interest and Taxes Interest Expense Taxable Income Taxes Net Income Dividends Addition to Retained Earnings 1100 700 100 74 226 30 196 15 181 16 165

The following financial information relate to Lang Industrial Systems Inc. and as a financial analyst you are required to assist with the following problems: Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant, and Equipment Less Accumulated Depreciation Net Fixed Assets Total Assets Balance Sheet ($ in Millions) 2022 2021 540 820 550 950 174 400 776 600 Total Current Liabilities 1910 1400 Long-Term Liabilities Long-Term 400 800 100 Liabilities and 2022 Owners' Equity 700 Current Liabilities Accounts Payable Notes Payable Debt Total Long- Term Liabilities Owners' Equity Common Stock ($1 Par) Retained Earnings Total Owners' Equity 2686 2100 Total Liab. and Owners' Equity 1120 810 460 1580 431 431 340 335 675 2021 2686 370 1180 440 440 310 170 480 2100 Income Statement ($ in Millions) 2022 Sales Cost of Goods Sold Administrative Expenses Depreciation Earnings Before Interest and Taxes Interest Expense Taxable Income Taxes Net Income Dividends Addition to Retained Earnings 1100 700 100 74 226 30 196 15 181 16 165

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 63E: Balance Sheet Presentation The following information relates to the assets of Westfield...

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