Question
In: Finance
The financial statements for BSW National Bank (BSWNB) are shown below: Balance Sheet BSW National Bank...
The financial statements for BSW National Bank (BSWNB) are shown below:
Balance Sheet BSW National Bank
|
Assets |
Liabilities and Equity |
||
|
Cash and due from banks |
$ ?936 |
Demand deposits |
$?5,040 |
|
Investments |
3,100 |
Small time deposits |
4,020 |
|
Federal funds sold |
1,664 |
Jumbo CDs |
4,680 |
|
Loans (less reserve for loan losses of 2,400) |
9,120 |
Federal funds purchased |
312 |
|
Premises |
780 |
Equity |
1,548 |
|
Total assets |
$15,600 |
Total liabilities/equity |
$15,600 |
Income Statement BSW National Bank
|
Interest income |
$1,150 |
|
Interest expense |
475 |
|
Provision for loan losses |
150 |
|
Noninterest income |
260 |
|
Noninterest expense |
525 |
|
Taxes |
60 |
|
a. What is the dollar value of earning assets held by BSWNB? (Please show work) |
|
|
b. What is the dollar value of interest-bearing liabilities held by BSWNB? (Please show work) |
|
|
c. What is BSWNB's total operating income? (Please show work) |
|
|
d. Calculate BSWNB's asset utilization ratio. (Please show work) |
|
|
e. Calculate BSWNB's net interest margin. (Please show work) |
Solutions
Expert Solution
| a. What is the dollar value of earning assets held by BSWNB? (Please show work) | ||||||||||
| Earning assets = Investment securities + Net Loans | ||||||||||
| 3100+1664+9120 | ||||||||||
| 13884 | $13,884 | |||||||||
| b. What is the dollar value of interest-bearing liabilities held by BSWNB? (Please show work) | ||||||||||
| Interest- bearing Liabilities = Demand deposits+Small time deposits+Jumbo CDs+ Federal funds purchased | ||||||||||
| 4020+4680+312 | ||||||||||
| 9012 | $9,012 | |||||||||
| c. What is BSWNB's total operating income? (Please show work) | ||||||||||
| Total Operating Income | ||||||||||
| Interest Income | $1,150 | |||||||||
| Interest Expense | ($475) | |||||||||
| Provision for Loan losses | ($150) | |||||||||
| Opearting income | $525 | |||||||||
| d. Calculate BSWNB's asset utilization ratio. (Please show work) | ||||||||||
| Asset utilization = (1150+260)/15600 | ||||||||||
| 9.04% | ||||||||||
| e. Calculate BSWNB's net interest margin. (Please show work) | ||||||||||
| ((1150/13884) - (475/9012)) | ||||||||||
| 3.01% | ||||||||||
jeff jeffy answered 3 years agoRelated Solutions
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and...
The financial statements for THE Bank are shown below:
Balance Sheet THE Bank
Assets
Liabilities and Equity
Cash
$
220
Demand deposits
$
2,470
Demand deposits from other FIs
620
Small time deposits
4,820
Investments
1,820
Jumbo CDs
1,445
Federal funds sold
920
Federal funds purchased
1,020
Loans
6,920
Equity
815
Reserve for loan losses
(700
)
Premises
770
Total assets
$
10,570
Total liabilities/equity
$
10,570
Income Statement THE Bank
Interest income
$
2,470
Interest expense
1,650
Provision for...
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and...
The financial statements for THE Bank are shown below:
Balance Sheet THE Bank
Assets
Liabilities and Equity
Cash
$
220
Demand deposits
$
2,470
Demand deposits from other FIs
620
Small time deposits
4,820
Investments
1,820
Jumbo CDs
1,445
Federal funds sold
920
Federal funds purchased
1,020
Loans
6,920
Equity
815
Reserve for loan losses
(700
)
Premises
770
Total assets
$
10,570
Total liabilities/equity
$
10,570
Income Statement THE Bank
Interest income
$
2,470
Interest expense
1,650
Provision for...
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and...
The financial statements for THE Bank are shown below: Balance
Sheet THE Bank Assets Liabilities and Equity Cash $ 280 Demand
deposits $ 2,530 Demand deposits from other FIs 680 Small time
deposits 4,880 Investments 1,880 Jumbo CDs 1,505 Federal funds sold
980 Federal funds purchased 1,080 Loans 6,980 Equity 735 Reserve
for loan losses (900 ) Premises 830 Total assets $ 10,730 Total
liabilities/equity $ 10,730 Income Statement THE Bank Interest
income $ 2,490 Interest expense 1,710 Provision for...
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and...
The financial statements for THE Bank are shown below:
Balance Sheet THE Bank
Assets
Liabilities and Equity
Cash
$
260
Demand deposits
$
2,510
Demand deposits from other FIs
660
Small time deposits
4,860
Investments
1,860
Jumbo CDs
1,485
Federal funds sold
960
Federal funds purchased
1,060
Loans
6,960
Equity
895
Reserve for loan losses
(700
)
Premises
810
Total assets
$
10,810
Total liabilities/equity
$
10,810
Income Statement THE Bank
Interest income
$
2,470
Interest expense
1,690
Provision for...
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FORECASTING FINANCIAL STATEMENTS -
Company A reported an income statement and balance sheet as
shown below:
Company A
Income Statement
For the Years Ended
2017
Sales
550.00
Cost of sales
275.00
Gross profit
275.00
SG&A
55.00
Depreciation
60.00
Interest
14.47
Pretax income
145.53
Tax
43.66
Net income
101.87
Company A
Balance Sheet
As of
2017
Cash
60.00
Accounts receivable
5.00
Inventory
8.00
Total current assets
73.00
PP&E - gross
600.00
Accumulated depreciation
200.00
PP&E - net
400.00
Total assets
473.00...
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In addition to the bank balance sheet information shown below,
the bank also has an Allowance for Loan Losses (ALL) of $10. The
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Financing Deficit Stevens Textile Corporation's 2019 financial
statements are shown below: Balance Sheet as of December 31, 2019
(Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320
Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0
Total current assets $16,560 Notes payable 2,100 Net fixed assets
12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500
Common stock 3,500 Retained earnings 12,860 Total assets $29,160
Total liabilities and equity $29,160 Income Statement for December
31, 2019 (Thousands of Dollars)...
Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Balance Sheet as of December...
Financing Deficit Stevens Textile Corporation's 2019 financial
statements are shown below: Balance Sheet as of December 31, 2019
(Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320
Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0
Total current assets $16,560 Notes payable 2,100 Net fixed assets
12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500
Common stock 3,500 Retained earnings 12,860 Total assets $29,160
Total liabilities and equity $29,160 Income Statement for December
31, 2019 (Thousands of Dollars)...
Stevens Textile Corporation's 2019 financial statements are shown below: Balance Sheet as of December 31, 2019...
Stevens Textile Corporation's 2019 financial statements are
shown below:
Balance Sheet as of December 31, 2019 (Thousands of Dollars)
Cash
$1,080.00
Accounts payable
$4,320
Receivables
$6,480.00
Accruals
2,880
Inventories
$9,000.00
Line of credit
0
Total current assets
$16,560.00
Notes payable
2,100
Net fixed assets
$12,600.00
Total current liabilities
$9,300
Mortgage bonds
3,500
Common stock
3,500
Retained earnings
12,860
Total assets
$29,160.00
Total liabilities and equity
$29,160
Income Statement for December 31, 2019 (Thousands of
Dollars)
Sales...
Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Balance Sheet as of December...
Financing Deficit
Stevens Textile Corporation's 2019 financial statements are
shown below:
Balance Sheet as of December 31, 2019 (Thousands of
Dollars)
Cash
$ 1,080
Accounts payable
$ 4,320
Receivables
6,480
Accruals
2,880
Inventories
9,000
Line of credit
0
Total current assets
$16,560
Notes payable
2,100
Net fixed assets
12,600
Total current liabilities
$ 9,300
Mortgage bonds
3,500
Common stock
3,500
Retained earnings
12,860
Total assets
$29,160
Total liabilities and equity
$29,160
Income Statement for December 31, 2019 (Thousands of
Dollars)...
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