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The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank Interest income Interest expense Provision for loan losses Noninterest income. Noninterest expense Taxes. $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total liabilities/equity $ 5,570 11,100 3,650 2,700 2,650 $25,670 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB'S ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places, (e.g.. 32.16))

The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank Interest income Interest expense Provision for loan losses Noninterest income. Noninterest expense Taxes. $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total liabilities/equity $ 5,570 11,100 3,650 2,700 2,650 $25,670 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB'S ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places, (e.g.. 32.16))

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank. Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits. Jumbo CDs Federal funds purchased Equity Total liabilities/equity % % % $ 5,570 11,100 3,650 2,700 2,650 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB's ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places. (e.g., 32.16)) $25,670
Transcribed Image Text:The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank. Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits. Jumbo CDs Federal funds purchased Equity Total liabilities/equity % % % $ 5,570 11,100 3,650 2,700 2,650 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB's ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places. (e.g., 32.16)) $25,670
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