DodgeBank has the following items on its balance sheet £10m loans to corporations £5m loans to households £15m invested in government bonds £30m retail current account deposits (deposits by general public with DodgeBank) £5m commercial current account deposits (deposits by companies with DodgeBank) £10m tangible assets and property £ 5m cash in vaults £ 5m reserve deposits with Bank of England (deposits by Dodgebank) £10 borrowing by DodgeBank in money market a) Construct a balance sheet for DodgeBank with each of the above items included. b) Calculate Dodge Bank's net worth and show where it appears on the balance sheet. c) Which of DodgeBank balance sheet items should be included in a standard definition
DodgeBank has the following items on its balance sheet £10m loans to corporations £5m loans to households £15m invested in government bonds £30m retail current account deposits (deposits by general public with DodgeBank) £5m commercial current account deposits (deposits by companies with DodgeBank) £10m tangible assets and property £ 5m cash in vaults £ 5m reserve deposits with Bank of England (deposits by Dodgebank) £10 borrowing by DodgeBank in money market a) Construct a balance sheet for DodgeBank with each of the above items included. b) Calculate Dodge Bank's net worth and show where it appears on the balance sheet. c) Which of DodgeBank balance sheet items should be included in a standard definition
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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