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Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional fixed assets at a cost of $50,000.

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Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional fixed assets at a cost of $50,000. Energen obtained a.5-year, $50,000 loan at a 9% interest rate from its bank. Hastings, on the other hand, decided to lease the required $50,000 capacity for 5 years, and a 9% return was built into the lease. The balance sheet for each company, before the asset increases, follows: a. Show the balance sheets for both firms after the asset increases, and calculate each firm's new debt ratio assuming that the lease is not capitalized. Round the monetary values to the nearest dollar and percentage values to the nearest whole number. Debt ratio: os Hastings Corporation Balance Sheet (Leases as operating lease) Debt ratio: b. Show how Hastings's balance sheet would look immediately after the financing assuming the lease is capitalized. Round the monetary values to the nearest dollar and percentage value to the nearest whole number. a. Show the balance sheets for both fimms aften the asset increases, and calculate each firm's new debt ratio assuming that the lease is not cabitalized, Round the monetary values to the nearest doliar and percentage values to the nearest whole number. Debt ratio: b. Show how Hastings's balance sheet would look immedately after the financisg assuming the lease is capitalized. Acund the monetary values te the nearest dodar and percentage valae to the nebrest whole number

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