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Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines 1 Expect no growth in loans for

Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines
1 Expect no growth in loans for the first three months and then 5% each month from April to June.
It will stay at this level (so 0% growth) until September and then we expect 3% growth from October to the end of the year.
2 For the deposits, we expect a constant growth of 3.25% each month for the entire year
3 Operational and admin expenses will increase by $750 every month
4 The plan is to leave our average loan interest rate at 5% until June and then increase it to 7% for the second half of the year
5 For deposits, the interest we paid to our customers will go up by 0.10% each month for the first six months, and then stay flat (no change) for the rest of the year
ABC BANK
Balance Sheet
2022 FORECAST
Jan
Assets
Loans
Monthly Growth 0%
Balance $50,000,000
Interest rate (per year) 5.00%
Liabilities
Monthly Growth 0%
Deposits $75,000,000
Interest rate (per year) 1.00%
Income Statement 2022 FORECAST
Jan
Loan Interest Income $208,333
Deposits Interest Expense $62,500
Operations and Admin Expense 15,000
Net Income (Profit or Loss) 130,833

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