A. calculate the net return on assets? B. calculate the gap? c. if interest rate rise 2%, what will the change be in net interest income/loss ? D. How spring company can use gap analysis to reduce its exposure to interest rate risk?

The Spring Company is concerned about the current state of the economy. The company is highly leveraged with both short and long-term debt. The peak sales season has just passed and the company has invested excess funds in short-term securities, with variable rate. Short term notes are also based on variable rates. Exhibit-1 shows the company's balance sheet as at December 31, 2022. Exhibit 1. Spring Company Balance sheet As at December 31,2022 The current rates on Spring's various investments and liabilities are shown below in Exhibit-2 Exhibit 2 Average Yields and Cost of Investments and Liabilities The Spring Company is concerned about the current state of the economy. The company is highly leveraged with both short and long-term debt. The peak sales season has just passed and the company has invested excess funds in short-term securities, with variable rate. Short term notes are also based on variable rates. Exhibit-1 shows the company's balance sheet as at December 31, 2022. Exhibit 1. Spring Company Balance sheet As at December 31,2022 The current rates on Spring's various investments and liabilities are shown below in Exhibit-2 Exhibit 2 Average Yields and Cost of Investments and Liabilities