Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) $ 10,300 36,000 55,000 Assets Cash and due from banks Investment securities Repurchase agreements Loans Fixed assets Other assets Total assets Income Statement (in millions) Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures: Total interest expense Net interest income. Provision for loan losses: Noninterest income Noninterest expenses Income before taxes Taxes Net income a. Return on equity b. Return on assets Asset utilization Equity multiplier Profit margin C. d. e. f. 19. h. 1. Interest expense ratio Provision for loan loss ratio Noninterest expense ratio Tax ratio ** % % % x** For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 32.16)): X % % % % % $ 237,600 103,000 Debentures 28,000 5,300 $ 10,300 5,300 7,300 2,300 $ 25,200 $ 10,300 3,300 $ 13,600 $ 11,600 3,000 3,300 2,300 Liabilities and Equity $ 9,600 3,500 $ 6,100 Demand deposits NOW accounts Retail CDs. Total liabilities Common stock Paid-in capital Retained earnings Total liabilities and equity $ 32,000 102,000 41,000 32,000 $ 207,000 12,000 4,000 14,600 $ 237,600
Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) $ 10,300 36,000 55,000 Assets Cash and due from banks Investment securities Repurchase agreements Loans Fixed assets Other assets Total assets Income Statement (in millions) Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures: Total interest expense Net interest income. Provision for loan losses: Noninterest income Noninterest expenses Income before taxes Taxes Net income a. Return on equity b. Return on assets Asset utilization Equity multiplier Profit margin C. d. e. f. 19. h. 1. Interest expense ratio Provision for loan loss ratio Noninterest expense ratio Tax ratio ** % % % x** For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 32.16)): X % % % % % $ 237,600 103,000 Debentures 28,000 5,300 $ 10,300 5,300 7,300 2,300 $ 25,200 $ 10,300 3,300 $ 13,600 $ 11,600 3,000 3,300 2,300 Liabilities and Equity $ 9,600 3,500 $ 6,100 Demand deposits NOW accounts Retail CDs. Total liabilities Common stock Paid-in capital Retained earnings Total liabilities and equity $ 32,000 102,000 41,000 32,000 $ 207,000 12,000 4,000 14,600 $ 237,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Megalopolis Bank has the following balance sheet and income statement.
Balance Sheet (in millions)
Demand deposits
$ 10,300
36,000
55,000 Retail CDs
NOW accounts
Assets
Cash and due from banks
Investment securities
Repurchase agreements
Loans
Fixed assets
Other assets
Total assets
Income Statement (in millions)
Interest on fees and loans
Interest on investment securities
Interest on repurchase agreements
Interest on deposits in banks
Total interest income
Interest on deposits
Interest on debentures
Total interest expense
Net interest income
Provision for loan losses
Noninterest income.
Noninterest expenses
Income before taxes
Taxes
Net income
a.
lb.
C.
d.
e.
Return on equity
Return on assets
Asset utilization
Equity multiplier
Profit margin
f.
9.
h. Noninterest expense ratio
i.
Tax ratio
Interest expense ratio
Provision for loan loss ratio
For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 32.16)):
8
%6
%
X
%
%
%6
%6
%
103,000 Debentures
28,000 Total liabilities
5,300
$ 237,600
$ 10,300
5,300
7,300
2,300
Liabilities and Equity
$ 25,200
$ 10,300
3,300
$ 13,600
$ 11,600
3,000
3,300
2,300
$ 9,600
3,500
$ 6,100
Common stock
Paid-in capital
Retained earnings
Total liabilities and equity
$ 32,000
102,000
41,000
32,000
$207,000
12,000
4,000
14,600
$ 237,600
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