Need a clear explanation.

a. For the original statements, calculate the ROA, ROE, Rate Sensitivity

b. The bank makes a loan of $20 to one of its customers who deposits the proceeds into their checking account.

Bank's Financial Ratios Suppose Melvin's Bank starts with the balance sheet and the income statement as shown below: Melvin's Bank - Initial Balance Sheet Assets Liabilities and Net Worth Reserves $10 Checking Deps $40 Securities (4%) $20 Non-transaction deposits (4%) Loans $70 Net Worth $20 Total $100 Total $100 $40 Melvin's Bank - Income Statement Securities 4% ($20)=$ Loans 8% ($70)=$ Total Interest Income $ Letters of Credit $2.00 Other fees $1.20 Total Non-interest Income Total Income $ $ 4% ($40)=$ Interest expense Savings accounts Non-interest expense Salaries, etc. Total Expense Profits $7.00 $ Based on the balance sheet and income statement above, calculate the ROA, ROE, and rate sensitivity gap for each question below. For each question, begin with the original numbers when calculating your answers. Show your work in each case