3. The following entries (in millions of dollars) are from the balance sheet of Rivendell National Bank (RNB): U.S. Treasury bills Demand deposits Mortgage-backed securities Loans from other banks C&I loans Discount loans NOW accounts Savings accounts Reserve deposits with Federal Reserve Cash items in the process of collection Municipal bonds Bank building $20 DSSDSGD 40 30 5 50 5 40 10 8 5 5 4 (a) Use the entries to construct a balance sheet, with assets on the left side of the balance sheet and liabilities and bank capital on the right side. (b) Calculate RNB's leverage.
3. The following entries (in millions of dollars) are from the balance sheet of Rivendell National Bank (RNB): U.S. Treasury bills Demand deposits Mortgage-backed securities Loans from other banks C&I loans Discount loans NOW accounts Savings accounts Reserve deposits with Federal Reserve Cash items in the process of collection Municipal bonds Bank building $20 DSSDSGD 40 30 5 50 5 40 10 8 5 5 4 (a) Use the entries to construct a balance sheet, with assets on the left side of the balance sheet and liabilities and bank capital on the right side. (b) Calculate RNB's leverage.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Introduction
The term balance sheet refers to a financial statement that details a company's assets, liabilities, and shareholder equity at a certain point in time. The assessment of a company's financial structure and the computation of investor return rates are both based on balance sheets. Balance sheets can be used along with other important financial data when performing fundamental analysis or computing financial ratios.
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