2) Specific information is available from a banks balance sheet to you as follows:

Assets ($ millions)

Cash $ 20,000

Deposits due from banks 7,500

Net loans 120,000

Investment in securities 40,000

Federal funds sold 25,000

Liabilities & Equity ($ millions)

Checking deposit $ 70,000

Savings deposit 100,000

Time deposits 60,000

Total equity capital 30,000

Income Statement ($ millions)

Interest income on loans and securities $ 8,800

Interest paid on deposits 5,950

Non-interest income 800

Total non-interest expense 1,250

Provision for loan loss 250

Calculate the following. Earnings spread ratio (20 points)

Show all your work to earn full credit.