Question

In: Accounting

Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is...

Use the following information to answer questions 3 through 6.

Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:                                                        

Fixed-rate loans maturing in 6 months                                  5,000,000

Fixed-rate loans maturing in 12 months                                12,000,000

All other fixed-rate loans                                                      75,000,000

Fixed rate securities maturing in 6 months                            15,000,000

Fixed rate securities maturing in 12 months                          12,000,000

All other fixed-rate securities                                                   5,000,000

Variable rate loans maturing in 6 months                              12,500,000

Variable rate loans maturing in 12 months                            32,500,000

All other variable-rate loans                                                  45,000,000

Federal funds sold                                                                 66,000,000

NOW accounts                                                                      35,000,000

Money Market Deposit Accounts (MMDA)                          15,000,000

Federal funds purchased                                                       10,000,000

Passbook savings accounts                                                        750,000

3 month certificates of deposit (CDs)                                    46,000,000

6 month certificates of deposit (CDs)                                    69,000,000

1 year certificates of deposit (CDs)                                       27,600,000

5 year certificates of deposit (CDs)                                       41,400,000

All variable rate loans at Farmers State Bank are repriced at the beginning of each month. Federal funds sold and purchased are repriced daily. Interest rates on passbook savings accounts can change once a year. Interest rates on NOW and MMDA accounts change daily.

  1. Categorize each of the items from Farmers State Bank into assets and liabilities. Circle the assets.  
  2. Next, categorize assets into:

RSA 0 to 6 month repricing,                $____________

RSA 7 to 12 month repricing               $____________

All other assets.                                   $____________

Categorize liabilities into:

RSL 0 to 6 month repricing                  $___________

RSL 7 to 12 month repricing                $___________

All other liabilities.                              $___________

Solutions

Expert Solution

PLEASE UPVOTE FOR MY WORK THANK YOU ........


Related Solutions

Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is...
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:                                                           Fixed-rate loans maturing in 6 months                                  5,000,000 Fixed-rate loans maturing in 12 months                                12,000,000 All other fixed-rate loans                                                      75,000,000 Fixed rate securities maturing in 6 months                            15,000,000 Fixed rate securities maturing in 12 months                          12,000,000 All other fixed-rate securities                                                   5,000,000 Variable rate loans maturing in 6...
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is...
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:                                                           Fixed-rate loans maturing in 6 months            5,000,000 Fixed-rate loans maturing in 12 months            12,000,000 All other fixed-rate loans                    75,000,000 Fixed rate securities maturing in 6 months            15,000,000 Fixed rate securities maturing in 12 months           12,000,000 All...
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is...
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:                                                         Fixed-rate loans maturing in 6 months                                  5,000,000 Fixed-rate loans maturing in 12 months                                12,000,000 All other fixed-rate loans                                                      75,000,000 Fixed rate securities maturing in 6 months                            15,000,000 Fixed rate securities maturing in 12 months                          12,000,000 All other fixed-rate securities                                                   5,000,000 Variable rate loans maturing in 6 months...
Use the following information to answer questions 6–8. You are doing a bank reconciliation for May,...
Use the following information to answer questions 6–8. You are doing a bank reconciliation for May, 20X1. You have a $2,785 unadjusted ledger cash balance and the following data: Outstanding checks: No. 719, $200; No. 727, $800; No. 732, $625 Deposits in transit, $1,200 Check No. 742 (for repairs) written for $505 but incorrectly recorded as $550 NSF check from a customer, $500 Bank service charge for May, $5 Balance per bank statement, $2,750 8. Which adjustment will you need...
Use the following information to answer the questions. State of Economy Probability of State Return on...
Use the following information to answer the questions. State of Economy Probability of State Return on Asset d in State Return on Asset e in State Return on Asset f in State Boom 0.38 0.06 0.34 0.16 Normal 0.52 0.06 0.15 0.12 Recession 0.10 0.06 -0.21 -0.09 a. What is the expected return of each asset? b. What is the variance of each asset? c. what is the Standard deviation of each asset?
Use the following information to answer the questions. State of Economy Probability of State Return on...
Use the following information to answer the questions. State of Economy Probability of State Return on Asset d in State Return on Asset e in State Return on Asset f in State Boom 0.32 0.07 0.28 0.16 Normal 0.46 0.07 0.19 0.08 Recession 0.22 0.07 -0.21 -0.07 a. What is the expected return of each asset? b. What is the variance of each asset? c. what is the Standard deviation of each asset?
Use the following information to answer Questions 6 and 7. The 1-, 2-, 3-, and 4-year...
Use the following information to answer Questions 6 and 7. The 1-, 2-, 3-, and 4-year oil forward prices are $60, $58.35, $57.40, and $55 per barrel, respectively. Your firm is thinking about starting up an offshore drilling station and needs to forecast revenue over the next 4 years. Assume the risk-free rate is 5.25% each year and initial costs are $150,000,000. 6. (1 point) If your firm expects to extract 1,100,000 barrels of oil per year and each barrel...
Use the following information to answer Questions #6 through #10.—Bimbo Bread Company started Year 2 with...
Use the following information to answer Questions #6 through #10.—Bimbo Bread Company started Year 2 with balances in the following accounts: ASSETS CLAIMS CASH INVENTORY LAND ACCTS. PAYABLE COMMON STOCK RET. EARNINGS 25,000 3,000 5,000 0 18,000 15,000 Bimbo experienced the following transactions during Year 2: Purchased $16,000 of inventory on account. Terms were 2/10, net 30. The inventory purchased above was delivered FOB Shipping Point. Freight costs totaled $600. Returned $500 of the inventory purchased above. Recorded the cash...
QUESTION 3 Use the information below to answer questions 3 through 5. The Cashman mortgage company...
QUESTION 3 Use the information below to answer questions 3 through 5. The Cashman mortgage company originated a pool containing 25 five-year fixed interest rate mortgages with an average balance of $100,000 each. All mortgages in the pool carry a coupon of 10%. (For simplicity, assume that all mortgage payments are made annually at 10% interest.) Assuming a constant annual prepayment rate of 10% (for simplicity, assume that prepayments are based on the pool balance at the end of the...
Use the Following Information to Answer the Questions Below to prepare the Bank Reconciliation 1) If...
Use the Following Information to Answer the Questions Below to prepare the Bank Reconciliation 1) If Any Differences or Errors are found, Assume that Our Business made the mistake and the BANK records are accurate. 2) The Following Items were Included on the Bank Statement from the Schwab Bank for the Month as Follows; Ending Bank Balance at January 31 was $69,000. Monthly Bank Fees of $1,500 NSF Check from Customer H.Clinton for $11,000 Interest Earned During the month was...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT