XYZ Bank has the following T account: Assets Liabilities Reserves 400,000 Deposits 1,600,000 Loans 1,400,000 Dept 300,000 securities 200,000 Capital 100,000 Based on the T account, calculate XYZ's leverage ratio. Interpret your result.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7: Accounting For Cash
Section: Chapter Questions
Problem 1SEA: CHECKING ACCOUNT TERMS Match the following words with their definitions:
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XYZ Bank has the following T account:
Assets
Liabilities
Reserves
400,000
Deposits
1,600,000
Loans
1,400,000
Dept
300,000
securities
200,000
Сapital
100,000
Based on the T account, calculate XYZ's
leverage ratio. Interpret your result.
Transcribed Image Text:XYZ Bank has the following T account: Assets Liabilities Reserves 400,000 Deposits 1,600,000 Loans 1,400,000 Dept 300,000 securities 200,000 Сapital 100,000 Based on the T account, calculate XYZ's leverage ratio. Interpret your result.
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