Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities.
Balance Sheet (in thousands)
| Assets |
| Rate Earned (%) |
| Cash and due from banks | $?6,000 | ?0 |
| Investment securities | 22,000 | ?8 |
| Repurchase agreements | 12,000 | ?6 |
| Loans less allowance for losses | 80,000 | 10 |
| Fixed assets | 10,000 | ?0 |
| Other earning assets | ??4,000 | ?9 |
| Total assets | $134,000 |
|
| Liabilities and Equity | Rate Paid (%) | |
| Demand deposits | $?9,000 | 0 |
| NOW accounts | 69,000 | 5 |
| Retail CDs | 18,000 | 7 |
| Subordinated debentures | ?14,000 | 8 |
| Total liabilities | 110,000 |
|
| Common stock | 10,000 |
|
| Paid-in capital surplus | 3,000 |
|
| Retained earnings | ?11,000 |
|
| Total liabilities and equity | $134,000 |
|
If the bank earns $120,000 in noninterest income, incurs $80,000 in noninterest expenses, and pays $2,500,000 in taxes, what is its net income? (Please show work)
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.