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Calculate: Tax management efficiency Expense control efficiency Asset management efficiency

Calculate: Tax management efficiency Expense control efficiency Asset management efficiency

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate:

  1. Tax management efficiency
  2. Expense control efficiency
  3. Asset management efficiency
The latest report of condition and income and expense statement for SME National Bank are as shown in the following tables: SME National Bank (complete) Income and Expense Statement (Report of Income in Millions of GHS) Interest and fees on loans 50 Interest and dividends on securities Total interest income 56 Interest paid on deposits Interest on nondeposit borrowings Total interest expense 40 6 46 Net interest income 10 Provision for loan losses 5 Noninterest income and fees Noninterest expenses: 20 Salaries and employee benefits Overhead expenses Other noninterest expenses Total noninterest expenses Net noninterest income 10* 5 17 -2 Pretax operating income Securities gains (or losses) Pretax net operating income 8 2 10 Таxes 2 Net operating income Net extraordinary income Net income 8 -1 7 *Note: the bank currently has 40 FTE employees.
Transcribed Image Text:The latest report of condition and income and expense statement for SME National Bank are as shown in the following tables: SME National Bank (complete) Income and Expense Statement (Report of Income in Millions of GHS) Interest and fees on loans 50 Interest and dividends on securities Total interest income 56 Interest paid on deposits Interest on nondeposit borrowings Total interest expense 40 6 46 Net interest income 10 Provision for loan losses 5 Noninterest income and fees Noninterest expenses: 20 Salaries and employee benefits Overhead expenses Other noninterest expenses Total noninterest expenses Net noninterest income 10* 5 17 -2 Pretax operating income Securities gains (or losses) Pretax net operating income 8 2 10 Таxes 2 Net operating income Net extraordinary income Net income 8 -1 7 *Note: the bank currently has 40 FTE employees.
SME National Bank Report of Condition (In Millions of GHS) Assets Liabilities Cash and deposits due from banks Investment securities 100 Demand deposits 150 Savings deposits 10 Time deposits 700 Money mkt funds purchased Total liabilities 190 180 Money mkt funds sold Net loans 470 80 (Allowance for loan losses = 25) (Unearned income on loans = 5) Net Fixed Assets 920 Equity capital 50 Common stock 20 Surplus 980 Retained earnings Total Capital 860 Interest-bearing deposits 35 Total assets 35 80 Total earnings assets 650 Using these statements, calculate the following performance measures:
Transcribed Image Text:SME National Bank Report of Condition (In Millions of GHS) Assets Liabilities Cash and deposits due from banks Investment securities 100 Demand deposits 150 Savings deposits 10 Time deposits 700 Money mkt funds purchased Total liabilities 190 180 Money mkt funds sold Net loans 470 80 (Allowance for loan losses = 25) (Unearned income on loans = 5) Net Fixed Assets 920 Equity capital 50 Common stock 20 Surplus 980 Retained earnings Total Capital 860 Interest-bearing deposits 35 Total assets 35 80 Total earnings assets 650 Using these statements, calculate the following performance measures:
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