Evaluating Bank performance -Problem TwoGiven the following information for MSH bank, knowing that this is the overall financialdata and any missing data refer to a zero account. Also, all the investments accounts in theassets section are considered to be short-term with maturity less than one year. Answerquestions I to 11 below:Cash and due from banks$ 250,000$ 73,342.000$ 34,450,000$ 2,298,000$ 13,840,000Total Llabilities and Equity $ 123,930,000Demand DepositsTime DepositsFederal Funds PurchasedFed Funds Sold$ 925.000$ 95,555.000$ 27,200,000$ 123,930.000Investment SecuritiesLoansEquityFixod AssetsTotal Assetstax rate40%interest on loans15.40%interest on investmentsInterest on time depositsinterest on federal funds purchasedNo interest on demand depositsOverhead ExpensesEarning assets % of total assets8.30%4.85%6.10%$120,00075%42O2,700Z.700JOU, 5502- The Net Income is:a- $6,800,815.25O b- $7,716,745.20O c- $5,235,920.32O d- $4,921,440.24e- None of the above

Net income refers to the leftover profit of a company after deducting all the expenses from the…

Given the following information for MSH bank, knowing that this is the overall financial data and any missing data refer to a zero account. Also, all the investments accounts in the assets section are considered to be short-term with maturity less than one year. Answer questions 1 to 11 below: Cash and due from banks $250,000 Fed Funds Sold Investment Securities Loans Fixed Assets Total Assets tax rate interest on loans interest on investments $ $925,000 $ 95,555,000 $ 27,200,000 $123,930,000 40% 15.40% 8.30% 4.85% 6.10% $120,000 75% interest on time deposits interest on federal funds purchased No interest on demand deposits Overhead Expenses Earning assets % of total assets Demand Deposits Time Deposits Federal Funds Purchased Equity $ 73,342,000 34,450,000 $ $ 2,298,000 $ 13,840,000 Total Liabilities and Equity $123,930,000

Given the following information for MSH bank, knowing that this is the overall financial data and any missing data refer to a zero account. Also, all the investments accounts in the assets section are considered to be short-term with maturity less than one year. Answer questions 1 to 11 below: Cash and due from banks $250,000 Fed Funds Sold Investment Securities Loans Fixed Assets Total Assets tax rate interest on loans interest on investments $ $925,000 $ 95,555,000 $ 27,200,000 $123,930,000 40% 15.40% 8.30% 4.85% 6.10% $120,000 75% interest on time deposits interest on federal funds purchased No interest on demand deposits Overhead Expenses Earning assets % of total assets Demand Deposits Time Deposits Federal Funds Purchased Equity $ 73,342,000 34,450,000 $ $ 2,298,000 $ 13,840,000 Total Liabilities and Equity $123,930,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.21E

See similar textbooks

Similar questions

a) Bank A has the following balance sheet (in millions): Assets Cash Securities Loans Total assets $5 10 55 $70 Liabilities and equity Deposits Equity Total liabilities and equity The bank is expecting a $12 million net deposit drain. $62 8 $70 i) Show the new balance sheet if the bank uses purchased liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities ii) Show the new balance sheet if the bank uses stored liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities.
a) Bank A has the following balance sheet (in millions): Assets Cash Securities Loans Total assets $70 The bank is expecting a $12 million net deposit drain. Liabilities and equity Deposits Equity Total liabilities and equity $5 10 55 $62 9 $70 ii) Show the new balance sheet if the bank uses stored liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities.
Balance sheet ($ million) Cash $10 50 Loans Securities 15 Deposit Equity $68 7 The bank is expecting a $15 net deposit drain. Show the bank's balance sheet if: a. The bank purchases liability to offset this expected drain. b. The bank uses the asset side liquidity to finance this expected drain.
The bank that you own has the following balance sheet: Assets Liabilities $ 60 million Deposits $120 million Bank capital $420 million Reserves $500 million $100 million Securities Loans a) Record a bookkeeping immediately after the bank suffers a deposit outflow of $50 million when a required reserve ratio on deposits is 10%. What problem do you see on the T-account after the event? Assets Liabilities Reserves Deposits Bank capital Securities Loans b) What action(s) you want to take to rectify the situation? Make your suggestion(s) in terms of the T-account and explain them. Assets Liabilities
C & D ONLY
Question 3: Refer to the exhibit. If Bank QRS's assets rise by 3 percent and its liabilities rise by 2 percent, by what percentage would its bank capital change compared to its original bank capital (i.e., the value originally in blank (B))? Balance Sheet Bank QRS ($ millions) Assets Reserves (A) Loans 200 Liabilities Checkable Deposits $ 150 O a. 5.7 percent O b. 5.0 percent O c. 1.0 percent O d. 6.2 percent Nontransaction Deposits 50 Securities 60 Borrowings Total Assets $284.5 Bank Capital 6 (B)
Suppose that: Banks Debt Ratio Total Liabilities Total Capital Net Income Bank Alpha 1.50 $3,106,717m $279,354m $27,410m Bank Beta 1.39 $2,059,798m $200,523m $11,370m Which one is the best performing bank? a. Bank Alphab. Bank Betac. Both Banks
Ore
Give an Answer with an Explanation, And also give Correct and incorrect answers Explanation
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 40Deposits 215Loans 160 Securities 40Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
Show new balance sheet if bank uses purchased liquidity management to offset expected drain of $12 million net deposit. Also explain effect on the size and composition of assets and liab
E3