The following data are provided by Coach Sarah Company: Assets at book value P750,000 Assets at net realizable value 525,000 Fully secured mortgage 300,000 Unsecured accounts and notes payable 350,000 Unrecorded liabilities: Interest on bank notes 2,500 Estimated cost of administering estate 30,000 What is the estimated deficienc
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The following data are provided by Coach Sarah Company:
Assets at book value
P750,000
Assets at net realizable value
525,000
Fully secured mortgage
300,000
Unsecured accounts and notes payable
350,000
Unrecorded liabilities:
Interest on bank notes
2,500
Estimated cost of administering estate
30,000
What is the estimated deficiency?
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Solved in 3 steps
- The financial statements for MHM Bank (MHM) are shown below: Assets Cash and due from banks Demand deposits at other FIS Investments Federal funds sold Loans (less reserve for loan losses of 3,400) Premises Total assets Income Statement MHM Bank Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. MHM's earning assets b. MHM's interest-bearing liabilities Balance Sheet MHM Bank $ 2,020 2,100 6,280 3,090 20,260 2,370 $36, 120 C. MHM's spread d. MHM's interest expense ratio $ 4,258 2,224 1,100 800 1,075 335 Liabilities and Equity a. 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 deposits Small time deposits…Examine the balance sheet of commercial banks in the tollowing tabie. Assete S Blion Total Liabilities and Net Horth SBAllion Total Liabilities Real anseta Equipment and premisen Other real estate $ 10,281.3 1,206.0 156.2 0.9 Deposita Debt and other borroved funda Federal funda and repurehase 56.0 8.9 0.4 1.0 Total real assets 225.1 1.2 1,967.0 10.7 agreements Other 1,523.0 S 15,057.3 8.3 82.0 Total liabilities Tinaneial aeta Cash 898.3 4.9 43.7 34. 1,223.2 6.? 92.1 8,032.1 6,759.3 Investment securities Loans and leaees Other finaneial asseta Total financial asseta 16,912.9 Other assets Intangible asseta other Total other asseta 421.4 2.3 1,230.1 1.4 6.7 $ 3,310. 18,368.1 100.0 Net vorth 18.0 $ 18,368.1 100.0 Total Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets? (Round…Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% %$4 1700 8% Fixed rate $500 9% $1500 5% Non earning $ 5100 $. 1800 Equity 1900 Total $ 6900 $6900 What is the Net Interest Margin (NIM)
- The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank. Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits. Jumbo CDs Federal funds purchased Equity Total liabilities/equity % % % $ 5,570 11,100 3,650 2,700 2,650 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB's ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal…b) The manager for Tyler Bank and Trust has the following assets to manage: Duration Duration Asset Bonds (in years) 75,000,000 9.00 Consumer Loans 875,000,000 2.00 Value Liability Demand Deposits 300,000,000 1.00 Saving Accounts 1,347,000,000 0.50 Value (in years) Commercial Loans 700,000,000 5.00 Compute the duration gap.The amount of Gross Loans is The following are real Iife data extracted from the Housing Bank financial statements. Use them to answer the questions. Additional Information: Accumulated Provislons for Loan Losses (end balance) 250; Number of Outstanding Shares 315,000,000 (315 MIllon) and share price JD9 (Balance Sheet (in Milion (Assets (JD Cash and Balances at Central Banks Balances at Banks and Financial institutions Deposits at Banks and Financial institutions Total Cash and Due trom Depository institutions Trading Investments Available for Sale Investments Held to Maturity Investments, Net Total Securitles 1,478 743 53 2,221 581 745 1,327 Investments in Affilates 2,369 Loans (or Credit Facilities), Net 93 Fixed Assets, Net 6. Doferred income Tax Assets Other Assets Total Asseta (Uabilitles (JD Customers Deposits Banks & Financial Institutions Deposits 71 6,090 4,430 284 Total Deposits Cash Margins 4,714 290
- 41. After conducting a rate-sensitive analysis, a bank finds itself with the following amounts of rate-sensitive assets and liabilities (RSAS and RSL) and fixed-rate assets and liabilities (FRAs and FRLs); the rate of return and cost rates on the accounts are also given: Assets RSAS @ 4.25% FRAS @ 5.15% NEA Total Amount (Million $) S 322 S 700 S 120 $1,142 Liabilities & Equity RSLS @ 3.11% FRLS @ 4.95% Equity Total If the bank wishes to set up a swap to totally hedge the interest rate risk, the bank should A. pay a variable rate of interest and receive a fixed rate of interest. B. pay a fixed rate of interest and receive a variable rate of interest. Amount (Million $) S 200 $ 800 S 142 $1,142 C. pay a variable rate of interest and receive a variable rate of interest. D. pay a fixed rate of interest and receive a fixed rate of interest.Consider the following data : Total interest income 520,500 Total interest expense 145,300 Non interest income 65,200 Non interest expense 45,800 Provision for loan losses 5,400 Loss on securities 2,500 Taxes 1,800 The bank efficiency ratio would be Select one: O a. 14.77% O b. 10.40% O c. -65% O d. 65%A bank’s customer wants to exercise a $6,750,000 loan commitment. Show the balance sheet after the loan is established using purchased liquidity to fund the loan. Assets Liabilities and Equity Cash $1,550,000 Deposits $7,960,000 Loans 3,470,000 Equity 1,440,000 Securities 4,380,000 Total Assets $9,400,000 Total Liabilities and Equity $9,400,000 Please answer with excel explaination. Don't upload image.
- Consider the balance sheet for Inspired to Thrive (IT) Bank below: Inspired to Thrive Bank Balance Sheet as at December 31, 2021 Assets SLiabilities and Owner's Equity 275 Deposits 1,105 Debts 660 Owner's Equity Reserves 1,550.00 Loans 340.00 Securities 150.00 2,040 2,040.00 What is the leverage ratio of IT bank? Why is this ratio significant to the bank's operation?Consider the following bank balance sheet and the associated yields for earning assets and costs of liabilities. Assets Amount (000). Rate cash 400. 0% securitie 1600. 6.5% commercial loans 4000 9.0% credit card loans 3300. 10.0% loss reserves. 200 other assets 500 total assets. 10,000 Liabilities and equity Demand deposits. 1600 MMDAs. 3600 6.0% CDs. 2600 6.5% ST deposits. 1360. 5.0% Deferret tax credit. 200 Equity 640 total. 10000 Assume that net charge-offs $44,000 cash taxes paid $78,000 and allocated risk capital is $550,000 with a capital charge of 6 percent. determine : a) Calculate and show the bank income statement.How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S…