The financial statements for MHM Bank (MHM) are shown below:AssetsCash and due from banksDemand deposits at other FISInvestmentsFederal funds soldLoans (less reserve for loan losses of3,400)PremisesTotal assetsIncome Statement MHM BankInterest incomeInterest expenseProvision for loan lossesNoninterest incomeNoninterest expenseTaxesa. MHM's earning assetsb.MHM's interest-bearing liabilitiesBalance Sheet MHM Bank$ 2,0202,1006,2803,09020,2602,370$36, 120C. MHM's spreadd. MHM's interest expense ratio$ 4,2582,2241,1008001,075335Liabilities and Equitya. 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. (e.g., 32.161))%%Demand depositsSmall time depositsJumbo CDsFederal funds purchasedOther liabilitiesEquityTotal liabilities/equity$ 10,72010,4507,7705703,2203,390$36, 120

Dollar Value of MHM's Earning Assets, Earning assets : Investments + Federal Funds Sold + Loans (…

Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes 2,224 1,100 800 1,075 335 . Calculate the dollar value of MHM's earning assets. . Calculate the dollar value of MHM's interest-bearing liabilities. Calculate MHM's spread. (Do not round intermediate calculations. Round your percent 2.161)) . Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal p a. MHM's earning assets D. MHM's interest-bearing liabilities C. MHM's spread d. MHM's interest expense ratio % %

Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes 2,224 1,100 800 1,075 335 . Calculate the dollar value of MHM's earning assets. . Calculate the dollar value of MHM's interest-bearing liabilities. Calculate MHM's spread. (Do not round intermediate calculations. Round your percent 2.161)) . Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal p a. MHM's earning assets D. MHM's interest-bearing liabilities C. MHM's spread d. MHM's interest expense ratio % %

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter3: Financial Statements, Tools, And Budgets

Section: Chapter Questions

Problem 3DTM

See similar textbooks

Similar questions

Consider a bank with the following balance sheet (M means million): (Image Attached) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) and calculate the duration and convexity of the both asset and liability sides. Thank You in Advance
All the following are assets for commericial banks exept: A) loans B)cash C)Deposits D)Investment securities
Mortgage Bond obtained/secured from Lee Bank will be recorded as a cash outflow under financing activities in the Statement of Cash Flows. Select one: True O False
When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. drafting
Bank Intermediation Ratio also used to assess its liquidity* Capital to Loans Ratio Deposits to Capital Ratio Deposits to Loan Ratio Deposits to Total Assets Ratio Loans to Deposits Ratio
Megalopolis Bank has the following balance sheet and income statement. For Megalopolis, calculate: Return on equity Return on assets Asset utilization Equity multiplier Profit margin Interest expense ratio Provision for loan loss ratio Noninterest expense ratio Tax ratio
Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Cash is obtained through short-term bank loans.
Provide the formulas to calculate the following items from a company's financial statement: 1. Cash Position Indicator2. Liquid Securities Indicator3. Net Fed Funds and Repurchase Agreements Indicator4. Capacity Indicator5. Pledged Securities Ratio6. Hot Money Ratio7. Core Deposit Ratio8. Deposit Composition Ratio9. Loan Commitments Ratio
Which of the following ratios would a lender find most useful in monitoring a borrower's ability to make loan payments? () PE ratio Return on assets Total asset turnover Inventory turnover () Cash coverage ratio Previous Page Next Page Page 6
On the statement of cash flows, which of the following items is classified as a financingactivity?a. Borrowing cash by signing a long-term noteb. Purchasing investments with cashc. Acquiring long-term assets with cashd. Loaning money with a short-term note receivable
In what section of the balance sheet should the following items appear, and what balance sheet terminology would you use? a. Treasury stock (recorded at cost). b. Checking account at bank. c. Land (held as an investment). d. Sinking fund. e. Unamortized premium on bonds payable. f. Copyrights. g. Pension fund assets. h. Premium on common stock. i. Long-term investments (pledged against bank loans payable).
Illustrate with a diagram the flow of funds from lenders to borrowers in a financial system. Diagram must include: Savers Borrowers Financial markets Function of the financial intermediaries Function of the financial markets Direct finance Indirect finance