The financial statements for First National Bank (FNB) are shown below:Balance Sheet First National BankAssetsCashDemand deposits from other FISInvestmentsFederal funds soldLoansReserve for loan losses.PremisesTotal assets$ 5401,8004,5002,29516,425(2,025)2,135$25,670Income Statement First National Bank.Interest incomeInterest expenseProvision for loan lossesNoninterest incomeNoninterest expenseTaxesa. FNB's earning assetsb. FNB's ROAc. FNB's asset utilization ratiod.FNB's spread$3,0502,02027023051090Liabilities and EquityDemand depositsSmall time deposits.Jumbo CDsFederal funds purchasedEquityTotal liabilities/equity%%%$ 5,57011,1003,6502,7002,650a. 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

Financial ratio refers to the proportion of two figures of the financial statements used for…

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

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

Problem 1PS

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Examine the balance sheet of commercial banks in the tollowing tabie. Assete S Blion Total Liabilities and Net Horth SBAllion Total Liabilities Real anseta Equipment and premisen Other real estate $ 10,281.3 1,206.0 156.2 0.9 Deposita Debt and other borroved funda Federal funda and repurehase 56.0 8.9 0.4 1.0 Total real assets 225.1 1.2 1,967.0 10.7 agreements Other 1,523.0 S 15,057.3 8.3 82.0 Total liabilities Tinaneial aeta Cash 898.3 4.9 43.7 34. 1,223.2 6.? 92.1 8,032.1 6,759.3 Investment securities Loans and leaees Other finaneial asseta Total financial asseta 16,912.9 Other assets Intangible asseta other Total other asseta 421.4 2.3 1,230.1 1.4 6.7 $ 3,310. 18,368.1 100.0 Net vorth 18.0 $ 18,368.1 100.0 Total Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets? (Round…
Create a balance sheet with the following information. Create a balance sheet for the following information. Bank Accoutns recievable Equipement Accounts payable Long-term debt Capital Retained earning Withdrawis msi in ^ 00 C 4 I P JOOOOL K V B m 2050 6100 900 150 2000 5000 10900 9000 0 ALTOR in
2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.
The amount of Gross Loans is The following are real Iife data extracted from the Housing Bank financial statements. Use them to answer the questions. Additional Information: Accumulated Provislons for Loan Losses (end balance) 250; Number of Outstanding Shares 315,000,000 (315 MIllon) and share price JD9 (Balance Sheet (in Milion (Assets (JD Cash and Balances at Central Banks Balances at Banks and Financial institutions Deposits at Banks and Financial institutions Total Cash and Due trom Depository institutions Trading Investments Available for Sale Investments Held to Maturity Investments, Net Total Securitles 1,478 743 53 2,221 581 745 1,327 Investments in Affilates 2,369 Loans (or Credit Facilities), Net 93 Fixed Assets, Net 6. Doferred income Tax Assets Other Assets Total Asseta (Uabilitles (JD Customers Deposits Banks & Financial Institutions Deposits 71 6,090 4,430 284 Total Deposits Cash Margins 4,714 290
Consider the following data : Total interest income 520,500 Total interest expense 145,300 Non interest income 65,200 Non interest expense 45,800 Provision for loan losses 5,400 Loss on securities 2,500 Taxes 1,800 The bank efficiency ratio would be Select one: O a. 14.77% O b. 10.40% O c. -65% O d. 65%
The list of assets, equity and liability to be filled. Assets Amount (RO) Land and Building Plant and Equipment Furniture and Fitting Inventories Accounts and other receivables Cash Bank 43,789 11,571 11,571 Interest Expenses Taxes 35,097 62,796 40,875 160,531 Equity & Liabilities Equity Share Capital Bonds Payable Accounts Payable Outstanding Expenses Short Term Bank Borrowing The list of Income Statement items is given below. Sales Cost of goods sold General and Administrative Expenses Selling and Marketing Expenses Depreciation Expenses Amount (RO) 165,588 87028 18,469 18,861 6,144 Amount (RO) 78,560 5,591 Additional Information: 1. Dividend paid by the company in the year 2022 is RO 30,277 2. The face value of each share is RO 0.196 3. The market price of shares at end 2022 is Ro 318,685,485.58 162,59 5 34,465 10,58 0 183,36 3 54578 You are required to calculate - Earnings per share, Interest cover, Dividend cover, Price/Earnings ratio, Gross Profit Margin Ratio, Operating profit…
The financial statements for MHM Bank (MHM) are shown below: Assets Cash and due from banks Demand deposits at other FIS Investments Federal funds sold Loans (less reserve for loan losses of 4,200) Balance Sheet MHM Bank $ 2,100 Liabilities and Equity Demand deposits 2,900 Small time deposits 6,420 Jumbo CDs 3,170 Federal funds purchased 20,390 2,450 Other liabilities Equity $ 37,430 Total liabilities/equity Premises Total assets Income Statement MHM Bank Interest income $ 4,418 Interest expense 2,374 Provision for loan losses 1,900 Noninterest income 880 $ 10,800 10,530 7,850 650 4,130 3,470 $ 37,430 Noninterest expense Taxes 1,155 415 a. Calculate the dollar value of MHM's earning assets. b. Calculate the dollar value of MHM's Interest-bearing liabilities. c. Calculate MHM's spread. (Do not round Intermediate calculations. Round your percentage answer to 3 decimal places. (e.g., 32.161)) d. Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal places.…
Assets Cash Securities Loans Other Total Non-interest Income Non-Interest Expense Provision for Loan Loss Taxes Net Income (NI) Interest Income on Loans Interest Income on Securities Interest Expense 58.04% 6.12% $850 1,925 5,400 The bank's asset utlilization ratio (AU) is 5.46% 975 3.74% $9,150 18.60% Liability and Equity Deposits Other Borrowing Equity Total Income Statement $450 95 246 78 Use the following formula for the operating income: Operating income = Interest revenue + Noninterest income - Interest expense - Loan loss provisions 112 35 115 $115 $6,475 1,645 1,030 $9.150
Analyze the following accounts and satisfy the requirements given below. Accounts payable Accrued expenses Accumulated depreciation Additional paid-in capital Allowance for doubtful accounts Cash Common stock (PO.20 par) Gross accounts receivable Gross fixed assets Inventories Long term debt Net accounts receivable Net fixed assets Retained earnings Short-term bank loan (notes payable) P 39,000 8,000 51,000 86,000 2,000 23,000 45,000 40,000 486,000 54,000 210,000 38,000 435,000 138,000 24,000
3. From the following information relating to Bank Şobar, prepare Income Statement for the year ended 31st March 2020. Show the calculations separately. (PREPARED SHEDULES) Particulars Interest on overdraft Establishment Interest on bill discounted R.O 550,000 70,000 300,000 Rent Salaries 25,000 15,000 Interest on savings Printing and stationery Interest on fixed deposits Commission Interest on loan Interest on Borrowing Interest on cash credit Administration's fees Postage and telegram Maintenance expenses General Reserve 80,000 5,900 55,000 90,000 45,000 42,000 275,000 7,000 2,500 8,400 50,000 30.000 Loan Additional information: 1. Provide OMR 50,000 for doubtful debts 2. Provide OMR 120,000 for taxation 3. Rebate on bills discounted on 31-03-20 OMR 60,000 4. Dividend proposed to pay OMR 30,000 5. Last year Profit OMR 100,000
Consider the balance sheet for Inspired to Thrive (IT) Bank below: Inspired to Thrive Bank Balance Sheet as at December 31, 2021 Assets SLiabilities and Owner's Equity 275 Deposits 1,105 Debts 660 Owner's Equity Reserves 1,550.00 Loans 340.00 Securities 150.00 2,040 2,040.00 What is the leverage ratio of IT bank? Why is this ratio significant to the bank's operation?
b) The Balance Sheet for First Union Bank are shown below: Balance Sheet (in millions) Assets Cash and due from banks Investment securities Federal funds sold Net loans Premises Total iii) Total operating income Liabilities and Equity iv) Asset utilization ratio $380 Demand deposits 1,650 Small time deposits 880 Jumbo CDs 5,300 Federal funds purchased 400 Equity $8,610 Total liabilities and equity $3,000 2,200 2,550 70 790 The interest income for First Union Bank is $730 million and the noninterest income is $200 million. Calculate the following ratios and show each step of your calculation. Explain your results. $8,610

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