In: Accounting
You are given the following balance sheet information about Bank of the Coyote. Use it to answer the questions.
Assets |
Liabilities |
|||
Reserves at the Fed |
$1.2 million |
Checkable Deposits |
$6 million |
|
Vault Cash |
$0.3 million |
Saving Deposits |
$9 million |
|
Loans |
$15 million |
Time Deposits |
$4 million |
|
Securities |
$9 million |
Federal Funds loans |
$2.5 million |
|
Federal Funds loans |
$0 million |
Bank Capital |
$4 million |
a. Calculate Bank of the Coyote's leverage ratio.
b. Suppose the Bank of the Coyote earned $0.8 million in after-tax profits. Calculate the ROA for Bank of the Coyote.
c. Calculate Bank of the Coyote's ROE.