PART C (8 marks) Shelby Limited is financed as follows EQUITY AND LIABILITIES 10 000 000 Ordinary shares of R1 each R10 000 000 R9 350 000 R6 680 000 R5 580 000 Retained earnings Debentures Long-term loans Shelby Limited needs to buy a new machine to be able to handle the increase in production. They bought the machine for R2 100 000 and have financed it 100% with debt. This new machine was not accounted for in the financial statements of Shelby Limited yet. REQUIRED: a Calculate the amount financed by debt AFTER the new machine has been accounted b) Calculate the CURRENT capital structure (BEFORE the new machine was bought) c) Calculate the capital structure of Shelby Limited taking into account the amount financed for. of Shelby Limited (based on the book values for the new machine (NEW capital structure) (based on the book values)