bank’s customer wants to exercise a $6,750,000 loan commitment. Show the balance sheet after the loan is established using purchased liquidity to fund the loan.
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A bank’s customer wants to exercise a $6,750,000 loan commitment. Show the
Assets Liabilities and Equity
Cash $1,550,000 Deposits $7,960,000
Loans 3,470,000 Equity 1,440,000
Securities 4,380,000
Total Assets $9,400,000 Total Liabilities and Equity $9,400,000
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- The T-account below represents assets and liabilities for a bank. Use the T-account to calculate the bank's loans Loans Bonds Reserves Provide your answer below: million Assets ? $18 million $5 million Liabilities + Net Worth Deposits Net Worth $12 million $13 millionUse the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $200 Deposits $1,600 Loans $800 Debt $250 Securities $1,000 Capital (owners' equity) $150 Suppose a new customer adds $100 to his account at Southwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and increase the debt account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply. Its intended goal is to protect the interests of the depositors. Its intended goal is to protect the interests of those who hold equity in the bank. It specifies a minimum leverage ratio for all banks.Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $100 Deposits $1,000 Loans $500 Debt $50 Securities $400 Capital (owners' equity) -$50 Suppose the owners of the bank contribute an additional $125 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The total value of liabilities The size of the monetary base The return on each asset
- As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $ 120,000 $ 320,000 Receivables 220,000 302,000 Inventories 570,000 518,000 Total current assets 910,000 1,140,000 Other assets 500,000 612,000 Total assets $1,410,000 $1,752,000 Liabilities and Stockholders' Equity Current liabilities $ 305,000 $ 350,000 Long-term liabilities 400,000 500,000 Capital stock and retained earnings 705,000 902,000 Total liabilities and stockholders' equity $1,410,000 $1,752,000 Annual sales $ 930,000 $1,500,000 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 granted. Instructions Which of the two companies, as judged by the information given above,…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?Calculate the profit of a bank by preparing income and expenditure statement. -Assume that you are an accountant in a PNZ Bank. From the following particulars, prepare the profit and loss account of bank PNZ for the year ended 31-03-2020. Particulars OMR Particulars OMR Locker rent Discount on bills discounted Director and auditor fee Establishment Expenses Interest on loan Interest on fixed deposit Interest on cash credit Sundry expenses Impairment for credit loss Transfer fee Fee and commission expenses Provision for doubtful debts Decrease in net changes in face value of sale of investment 70,000 2,100,000 50,000 600,000 2,800,000 2,980,000 2,400,000 20,000 2,000 5,000 25,000 300,000 900 Interest on current account Interest on over draft Interest on savings bank account Postage and telegram Printing and stationary Discount on bills discounted Rent and taxes Income tax expenses Depreciation Fee and commission income Profit on exchange difference arising on foreign…
- As loan analyst for Wildhorse Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $119,000 $332,000 Receivables 226,000 298,000 Inventories 562,000 536,000 Total current assets 907,000 1,166,000 Other assets 483,000 636,000 Total assets $1,390,000 $1,802,000 Liabilities and Stockholders' Equity. Current liabilities $319,000 $350,000 Long-term liabilities 419.000 483,000 Capital stock and retained earnings 652,000 969,000 Total liabilities and stockholders' equity $1,390,000 $1,802,000 Annual sales $948,000 $1,453,000 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 granted. Compute the various ratios for each company. (Round answer to 2 decimal places, eg. 2.25.) Toulouse Co. Lautrec Co. Current ratio :1 Acid-test ratio Accounts receivable turnover times times…As loan analyst for Martinez Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $ 114,000 $ 328,000 Receivables 230,000 296,000 Inventories 582,000 493,000 Total current assets 926,000 1,117,000 Other assets 493,000 607,000 Total assets $ 1,419,000 $ 1,724,000 Liabilities and Stockholders’ Equity Current liabilities $ 314,000 $ 340,000 Long-term liabilities 385,000 493,000 Capital stock and retained earnings 720,000 891,000 Total liabilities and stockholders’ equity $ 1,419,000 $ 1,724,000 Annual sales $ 911,000 $ 1,440,000 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…As loan analyst for Waterway Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $114,000 $328,000 Receivables 230,000 296,000 Inventories 582,000 493,000 Total current assets 926,000 1,117,000 Other assets 493,000 607,000 Total assets $1,419,000 $1,724,000 Liabilities and Stockholders' Equity Current liabilities $314,000 $340,000 Long-term liabilities 385,000 493,000 Capital stock and retained earnings 720,000 891,000 Total liabilities and stockholders' equity $1,419,000 $1,724,000 Annual sales $911,000 $1,440,000 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 granted. Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.) Toulouse Co. Lautrec Co. Current ratio :1 :1 Acid-test ratio :1 :1 Accounts receivable turnover…
- 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 inRefer to the information provided in Table below to answer the question(s) that follow. Table First Charter Bank Assets Select one: O Reserves $800 Loans $400 Total $1,200 Refer to Table First Charter Bank's total assets are Liabilities a. $800. b. $400. C. $2,400 d. $1,200. Deposits Net Worth TotalOf the following, what would be classified as an asset, liability, and equity on a bank's balance sheet? Investment Securities- $23,000 •Demand Deposits- $19,000 •Now Accounts- $89,000 •Cash and Due from Banks- $9,000 •Retail CDs- $28,000 •Long-Term Debt- $19,000 •Reverse Repos- 42,000 •Loans- $90,000 •Fixed Assets- $15,000 •Other Assets- $4,000 •Paid-In Capital- $4,000 •Retained Earnings- $12,000 •Common Stock- $12,000 •Provision for Loan Losses- $2,000