70.2K

Verified Solution

Question

Accounting

Assets $M Liabilities & Equity $M
Cash and cash equivalents 15000 Checking accounts 95000
Treasury Securities 35000 NOW accounts 33000
Repurchase Agreements 62000 Retail CD instruments 38000
Consumer Loans 110000 Debt instruments 25000
Buildings and premises 7500 Total Liabilities 191000
Other assets 5000 Common stock 19000
Total Assets 234500 Paid in capital 5000
Retained earnings 19500
Total Liabilities and Equity 234500

Income Statement $M
Interest on loans and fees 8500
Interest on Treasury securities 3200
Interest on repurchase agreements 7600
Interest on deposits in banks 2500
Total Interest Income 21800
Interest on deposits 9200
Interest on debt instruments 3500
Total Interest Expense 12700
Operating Income 13700
Provision for loan losses 3500
Other income 4000
Other expenses 2300
Income before taxes Need to compute
Taxes 5000
Net Income Need to compute

a. Return on Equity
b. Return on Assets
c. Asset Utilization
d. Equity Multiplier

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students