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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
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) 2020 2019 2018 Net sales $6,777.40 $6,718.32 $5,473.30 Operating income 366.24 762.58 755.79 Interest expense (253.00) (178.71) (128.45) Other income (expense), net (6.80) 25.06 2.17 Noncontrolling interests (20.10) (27.51) (20.37) Earnings before income taxes 86.34 581.42 609.14 (Benefit) provision for income taxes (2.03) 199.08 214.97 Earnings from continuing operations 88.37 382.34 394.17 Discontinued operations (net of tax) 0.00 86.24 19.60 Net earnings $88.37 $468.58 $413.77 Abbreviated Consolidated Balance Sheet (in millions) 2020 2019 Total assets $7,744.59 $7,736.82 Long-term debt 2,030.49 1,078.28 Shareholders' equity 2,741.62 2,436.84 Total liabilities and stockholders' equity $7,744.59 $7,736.82 Note 8-Long-Term Debt and Credit Facilities (in millions) 2020 2019 5.75% Notes Due 2022 $490.00 $- Total long-term debt $2,030.49 $1,078.28 Required 1. The company reported that on February 1, 2020, it issued $490 million of 5.75% secured notes due February 1, 2022. a. Were the notes sold at a discount, a premium, or at par value? Answer 1 Par b. How much interest expense did the company record on August 1, 2020, assuming semiannual compounding? $Answer 2 14.088
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