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mechapel Astrata de File Edit View Sign Window Help Home Tools Lease Fxercise.pdf Sign In A 12 1 / 1 G do Financing Lease Problem You are given the following LCM, Inc. is going to lease some equipament for 15 years at an annual charge of $200,000 payable at the end of each year. There will be no salvnce value LCM's borrowing rate is 5% The lease satisfies all the criteria of a Capital Lease. The "Before" balance sheet is noted below. Da To do: 1. Full-in LCM's balance sheet and debt ratio at the lease's inception 2. Question: What would the balance sheet look like one year into the lease (t.e.. year later")? Assume straight-line depreciation for the asset, and Reuember the lease obligation is actized at 5%. This is a two-(or three) part question, one part having to do with calculating the depreciated asset value of the lease the other having to do with the amortized lease obligation. They are not die same. Therefore, an adjustment will need to be made to the balance sheet in order to make it balance. We shall assume that the borrowing rate and lease rates are the same. (000) Year Before Inception Later $200 Year Before Inception Later $100 Current Leabilities Current Assets Lease Equipment Fixed Assets 1,800 Obligation Lonelem 900 Debt Egnity 1.000 Total Debt $2,000 Equily Total $2,000 Debt Ratio 10 + Type here to search OBI V N A/C (1) ENG 7:25 PM 2/8/2021 mechapel Astrata de File Edit View Sign Window Help Home Tools Lease Fxercise.pdf Sign In A 12 1 / 1 G do Financing Lease Problem You are given the following LCM, Inc. is going to lease some equipament for 15 years at an annual charge of $200,000 payable at the end of each year. There will be no salvnce value LCM's borrowing rate is 5% The lease satisfies all the criteria of a Capital Lease. The "Before" balance sheet is noted below. Da To do: 1. Full-in LCM's balance sheet and debt ratio at the lease's inception 2. Question: What would the balance sheet look like one year into the lease (t.e.. year later")? Assume straight-line depreciation for the asset, and Reuember the lease obligation is actized at 5%. This is a two-(or three) part question, one part having to do with calculating the depreciated asset value of the lease the other having to do with the amortized lease obligation. They are not die same. Therefore, an adjustment will need to be made to the balance sheet in order to make it balance. We shall assume that the borrowing rate and lease rates are the same. (000) Year Before Inception Later $200 Year Before Inception Later $100 Current Leabilities Current Assets Lease Equipment Fixed Assets 1,800 Obligation Lonelem 900 Debt Egnity 1.000 Total Debt $2,000 Equily Total $2,000 Debt Ratio 10 + Type here to search OBI V N A/C (1) ENG 7:25 PM 2/8/2021