The following table shows Free Donut Bank's balance sheet. Free Donut Bank has a requiredreserve ratio of 20 percent and has $75 in excess reserves.Free Donut Bank's Balance SheetAssetsReservesCash equivalentsLong-term investments $1050Total Assets$1,335O $1,435Refer to the table above. What are Free Donut Bank's total assets?O $1,260$275$1,375Liabilities and stockholders' equityDemand DepositsShort-term borrowingLong-term debtTotal LiabilitiesStockholders' equityTotal liabilities + Stockholders' equity$200$175$60

The required reserve ratio= 20%= 0.20Required Reserves= Actual Reserves- Excess Reserves= 275- 75 =…

Answered: The following table shows Free Donut…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question: Given below is the balance sheet for the Bank of New Providence: Assets ($1,000,000s) Liabilities ($1,000,000s) Cash 52 Deposits 650 T-bills and Bonds 257 Long-term debt 326 Loans to Other Banks 95 Equity 88 Commercial Loans 364 Mortgages 296 Total 1,064 Total 1,064 The net profit for the bank was $10.3 million. A required reserve is specified at 5% of deposits. What is the bank's ROA?
As loan analyst for Carla Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $335,000 Receivables 214,000 305,000 Inventories 589,000 523,000 Total current assets 927,000 1,163,000 Other assets 482,000 582,000 Total assets $1,409,000 $1,745,000 Liabilities and Stockholders’ Equity Current liabilities $301,000 $368,000 Long-term liabilities 409,000 482,000 Capital stock and retained earnings 699,000 895,000 Total liabilities and stockholders’ equity $1,409,000 $1,745,000 Annual sales $946,000 $1,559,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be…
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets $4,000 62,000 17,000 9,000 Reserves $72,000 20,000 Loans Securities Fixed assets Total 92,000 Total 92,000 a. The Oilers Bank is over-reserved v by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $ 14 of 40 Next > < Prev
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
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The following information is extracted from Satellite Bank's balance sheet (all numbers are in millions of dollars). Assets (with liquidity levels in the parentheses) are: • Cash $38 Treasury securities $50 • AAA-rated Commercial Loans $280 (Level 2A) • Residential mortgage-backed securities $110 (Level 2B) • Land and buildings $40 Liabilities (with Run-off factors in the parentheses) are: Stable retail deposits $180 (3%) • Less stable retail deposits $50 (10%) • Less stable small business deposits $50 (10%) • Unsecured wholesale funding non-financial corporates $130 (75%) Assume that a 15% haircut applies to Level 2A assets and a 25% haircut applies to level 2B assets. Assume further that the amount of Level 2 assets in the stock of HQLA is capped at 2 of the amount of Level 1 assets. Cash inflows over the next 30 days from the bank's performing assets are $15 million. What is the bank's Liquidity Coverage Ratio (LCR)? a. 149.81% b. 98.74% c. 417.26% d. 129.91% O e. None of the other…
Bank two currently has $500 million in transaction deposits. The bank has $65 million in reserves. The and its Federal reserve requirement ratio is 12%. The bank's required reserves are excess reserves are A. $60 million; $0. B. $60 million; $5 million. C. $440 million; $5 million. D. $600 million; $60 million.

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