The financial statements for THE Bank are shown below: Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses Premises Total assets Income Statement THE Bank Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes Balance Sheet THE Bank $ 2,520 1,740 100 350 520 90 $ 310 710 1,910 1,010 7,010 (900) 860 $ 10,910 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total liabilities/equity $ 2,560 4,910 1,535 1,110 795 $ 10,910 a. Calculate THE Bank's earning assets. b. Calculate THE Bank's ROA. (Round your percentage answer to 3 decimal places. (e.g., 32.161)) c. Calculate THE Bank's total operating income. d. Calculate THE Bank's spread. (Do not round intermediate calculations. Round your percentage answer to 3 decimal places. (e.g. 32.161))
The financial statements for THE Bank are shown below: Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses Premises Total assets Income Statement THE Bank Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes Balance Sheet THE Bank $ 2,520 1,740 100 350 520 90 $ 310 710 1,910 1,010 7,010 (900) 860 $ 10,910 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total liabilities/equity $ 2,560 4,910 1,535 1,110 795 $ 10,910 a. Calculate THE Bank's earning assets. b. Calculate THE Bank's ROA. (Round your percentage answer to 3 decimal places. (e.g., 32.161)) c. Calculate THE Bank's total operating income. d. Calculate THE Bank's spread. (Do not round intermediate calculations. Round your percentage answer to 3 decimal places. (e.g. 32.161))
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ore

Transcribed Image Text:The financial statements for THE Bank are shown below:
Assets
Cash
Demand deposits from other Fis
Investments
Federal funds sold
Loans
Reserve for loan losses.
Premises
Total assets
Income Statement THE Bank
Interest income
Interest expense
Provision for loan losses
Noninterest income
Noninterest expense
Taxes
Balance Sheet THE Bank
$ 2,520
1,740
100
350
520
90
$ 310
710
1,910
1,010
7,010
(900)
860
$ 10,910
Liabilities and Equity
Demand deposits
Small time deposits
Jumbo CDs
Federal funds purchased
Equity
Total liabilities/equity
$ 2,560
4,910
1,535
1,110
795
$ 10,910
U
a. Calculate THE Bank's earning assets.
b. Calculate THE Bank's ROA. (Round your percentage answer to 3 decimal places. (e.g., 32.161))
c. Calculate THE Bank's total operating income.
d. Calculate THE Bank's spread. (Do not round intermediate calculations. Round your percentage answer to 3 decimal places. (e.g.,
32.161))
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