b) The Balance Sheet for First Union Bank are shown below: Balance Sheet (in millions) Assets Cash and due from banks Investment securities Federal funds sold Net loans Premises Total $380 1,650 880 5,300 400 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity $8,610 Total liabilities and equity $3,000 2,200 2,550 70 790 $8,610
b) The Balance Sheet for First Union Bank are shown below: Balance Sheet (in millions) Assets Cash and due from banks Investment securities Federal funds sold Net loans Premises Total $380 1,650 880 5,300 400 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity $8,610 Total liabilities and equity $3,000 2,200 2,550 70 790 $8,610
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![b) The Balance Sheet for First Union Bank are shown below:
Balance Sheet (in millions)
Assets
Cash and due from
banks
Investment securities
Federal funds sold
Net loans
Premises
Total
iii) Total operating income
Liabilities and Equity
iv) Asset utilization ratio
$380 Demand deposits
1,650 Small time deposits
880
Jumbo CDs
5,300
Federal funds purchased
400
Equity
$8,610 Total liabilities and equity
$3,000
2,200
2,550
70
790
The interest income for First Union Bank is $730 million and the noninterest income is $200 million.
Calculate the following ratios and show each step of your calculation. Explain your results.
$8,610](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d1b97ca-a014-4a9d-850a-b61b08d119c0%2Fbe2fe408-a5b5-41c0-8796-9ed15a279cd2%2Flgg3poi_processed.png&w=3840&q=75)
Transcribed Image Text:b) The Balance Sheet for First Union Bank are shown below:
Balance Sheet (in millions)
Assets
Cash and due from
banks
Investment securities
Federal funds sold
Net loans
Premises
Total
iii) Total operating income
Liabilities and Equity
iv) Asset utilization ratio
$380 Demand deposits
1,650 Small time deposits
880
Jumbo CDs
5,300
Federal funds purchased
400
Equity
$8,610 Total liabilities and equity
$3,000
2,200
2,550
70
790
The interest income for First Union Bank is $730 million and the noninterest income is $200 million.
Calculate the following ratios and show each step of your calculation. Explain your results.
$8,610
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