None JPMorgan Chase carries portfolios of both trading securities andavailable-for-sale securities. At the end of 2008 and 2007, the tradingsecurities were valued at $347.4 billion and $414.3 billion, respectively;and the available-for-sale securities were valued at $205.9 billion and$85.4 billion, respectively. Together, the investments comprise about 25percent of the company's total assets as of December 31, 2008.Unrealized gains reported on the 2008 income statement totaled $9.9billion.a. Trading securities are carried on the balance sheet at market value.Compute the net decrease in the investment in trading securities during2008.b. The net increase in the investment in available-for-sale securitiesreported on the statement of cash flows during 2008 was approximately$107.4 billion. Compute the unrealized net gains on the available-for-sale securities during 2008. On which financial statement would thisdollar amount be found?

Step 1: Define Trading SecuritiesEquity and debt instruments purchased by the company to reap…

Answered: JPMorgan Chase carries portfolios of…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 27P

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On January 1, 2016, a company's balance sheet reports its investments in debt securities as follows: Assets Investment in trading securities Investment in AFS securities Investment in HTM securities Equity Accumulated other comprehensive income: Unrealized gains (losses) on AFS securities Additional information: a. The HTM securities are $210,000 face value securities purchased on January 1, 2014, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%. $165,000 95,000 217,922 $4,500 b. The trading securities on hand on January 1 were sold in 2016 for $185,000. c. More trading securities were purchased for $105,000. They are still on hand at December 31, 2016, and have a fair value of $120,000. d. AFS securities, originally purchased for $27,000 with a carrying value of $24,000 as of January 1, 2016, were sold for $32,000. e. AFS securities on hand at December 31, 2016, have a fair value of $85,000 $20,000 $15,000…
Use the information for the question(s) below. In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million. Perrigo's market debt to equity ratio is closest to: A) 0.24 B) 0.50 C) 0.75 D) 0.89
Ava’s SpinBall Corp. lists fixed assets of $12 million on its balance sheet. The firm’s fixed assets have recently been appraised at $16 million. Ava’s SpinBall Corp.’s balance sheet also lists current assets at $5 million. Current assets were appraised at $6 million. Current liabilities’ book and market values stand at $3 million and the firm’s book and market values of long-term debt are $7 million. Calculate the book and market values of the firm’s stockholders’ equity. Construct the book value and market value balance sheets for Ava’s SpinBall Corp.
Vishnu
Data related to available-for sale securities for Aetna Corporation for the Year 2016 is provided below: Mark-to-market value of available-for-sale securities, Ending Amortized cost of available-for-sale securities, Beginning Purchases of available-for-sale securities during the year Amortized cost of available-for-sale securities, Ending $8,000 $1,200 $3,000 $1,550 Mark-to-market value of available-for-sale securities, Beginning $4,500 Additional information: No dividend revenue or interest revenue earned or received during the year. No securities were sold, and no securities were matured during the year. What would be the unrealized gain or loss for the year 2016? a. $500 Unrealized gain b. $1,300 Unrealized loss c. $2,150 Unrealized gain d. $1,800 Unrealized loss
Raleigh Racers has $17 billion in total assets. Its balance sheet shows $3 billion in current liabilities, $5 billion in long-term debt, and $9 billion in common equity. It has 750 million shares of common stock outstanding, and its stock price is $33 per share. What is Raleigh’s market-to-book ratio? a. 1.13 b. 2.75 c. 3.67 d. 1.94 e. 1.46
At December 31, 2021, Hull-Meyers Corp. had the following investments that were purchased during 2021, its first year of operations: Trading Securities: Security A Security B Totals Securities Available-for-Sale: Security C Security D Totals Securities to Be Held-to-Maturity: Security E Security F Totals Trading Securities Security A Security B Securities Available-for-Sale Security C Security D Securities to be Held-to-Maturity Security E Security F Totals Amortized cost Reported on Balance Sheet as: Current assets $ 905,000 110,000 $1,015,000 Noncurrent assets $ 705,000 905,000 $1,610,000 $ 495,000 620,000 $1,115,000 No investments were sold during 2021. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent. Required: Complete the following table. (Amounts to be deducted should be indicated with a minus sign.) Fair Value $915,500 104,900 $1,020,400 $ 784,500 920, 200 $1,704,700 Net Income (I/S) $…
Onshore Bank has $39 million in assets, with risk-adjusted assets of $29 million. Core Equity Tier 1 (CET1) capital is $1,350,000, additional Tier I capital is $550,000, and Tier Il capital is $438,000. The current value of the CET1 ratio is 4.66 percent, the Tier I ratio is 6.55 percent, and the total capital ratio is 8.06 percent. Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. a. The bank issues $2.9 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. % % % CET1 ratio Tier I ratio Total capital ratio
Onshore Bank has $32 million in assets, with risk-weighted assets of $22 million. Core Equity Tier 1 (CET1) capital is $1,000,000, additional Tier I capital is $340,000, and Tier II capital is $424,000. The current value of the CET1 ratio is 4.55 percent, the Tier I ratio is 6.09 percent, and the total capital ratio is 8.02 percent. Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. a. The bank repurchases $112,000 of common stock with cash. b. The bank issues $3.2 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $512,000 in deposits and invests them in T-bills. d. The bank issues $812,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $2.2 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $5.2 million of…
Edelman Engines has $15 billion in total assets of which cash and equivalents total $120 million. Its balance sheet shows $2.25 billion in current liabilities of which the notes payable balance totals $ 0.97 billion. The firm also has $6.75 billion in long-term debt and $6 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $39 per share. The firm's EBITDA totals $1.872 billion. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What are Edelman's market/book and its EV/EBITDA ratios? Do not round intermediate calculations. Round your answers to two decimal places.
Onshore Bank has $28 million in assets, with risk-weighted assets of $18 million. Core Equity Tier 1 (CET1) capital is $950,000, additional Tier I capital is $210,000, and Tier II capital is $416,000. The current value of the CET1 ratio is 5.28 percent, the Tier I ratio is 6.44 percent, and the total capital ratio is 8.76 percent. Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. a. The bank repurchases $108,000 of common stock with cash. b. The bank issues $2.8 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $508,000 in deposits and invests them in T-bills. d. The bank issues $808,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $1.8 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $4.8 million of…
Onshore Bank has $31 million in assets, with risk-adjusted assets of $21 million. Core Equity Tier 1 (CET1) capital is $1,050,000, additional Tier I capital is $270,000, and Tier II capital is $422,000. The current value of the CET1 ratio is 5 percent, the Tier I ratio is 6.29 percent, and the total capital ratio is 8.3 percent. Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. b. The bank issues $3.1 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 70 percent. d. The bank issues $811,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. f. Homeowners pay back $5.1 million of mortgages with loan-to-value ratios of 50 percent and the bank uses the proceeds to build new ATMs. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E The bank issues $811,000 in common…

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