Question
In: Finance
If you know the following information: total interest income $150 total interest expense 100 total noninterest...
If you know the following information:
total interest income $150
total interest expense 100
total noninterest income 75
total noninterest expense 90
provision for loan losses 10
income taxes 4
increases in banks undivided profits 6
calculate the following:
net interest income
net non interest income
pretax net operating income
net income after taxes
total operating revenues
total operating expenses
dividends paid to common stockholders
Solutions
Expert Solution
Ans.1. Net Interest Income = Total interest Income - total interest expenses = $150-$100 = $50
Ans.2. Net non interest income = total non-interest income - total non-interest expenses
Net non interest income = $75-$90 = ($15).
Ans.3.Net operating Income = Operating Revenue- Operating Expenses.
Net operating income = Net Interest Income + Net non interest income - ( total interest expenses+ total non-interest expenses+ provision for loan losses = $150+$75 - ($100+ $90+ $10) = $25.
Net operating Income = $150+$75 -( $100+ $90) = $35.
Ans.4. Net operating Income after taxes = Net operating Income - Taxes = $35 -$4 = $31.
Ans.5.Total operating Revenue = Total interest Income + Total non-interest income = $150+ $75 = $225.
Ans.6.Total operating Expenses = Total interest expenses+ total non-interest expenses = $100+$90 = $190.
Ans.7. Dividend paid to shareholders = Net Income - increase in banks undivided profits = $31 - $6 = $25
jeff jeffy answered 1 year agoRelated Solutions
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$
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$
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c.
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d.
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0
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34,776
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Company
numerator
/
denominator
=
ratio
/
=
n/a
a
$
/
$
=
n/a
b
$
/
$
=
n/a
c
$
/
$
=
n/a
d
$
/
$
=
n/a
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Determine the asset turnover ratio. Round your answer to
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Interest expense
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Determine the return on total assets. Round percentage
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$6,000,000
Interest expense
300,000
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Determine the asset turnover ratio. Round your answer to
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%
Liabilities and Equity
Amount
%
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80
0.0%
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0.0%
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