Problem 3-6
	A banks assets consist of Cash: $1.5 million Loans: $10 million Securities: $4.5 million Fixed assets: $2 million In addition, the banks owners capital is $1.5 million. a. Calculate the equity capital ratio. b. If $2 million in bad loans were removed from the banks assets, show how the equity capital ratio would change.
	Answer:
	Enter the answers in blue shaded cells
		Category		Amount
	a. Equity Capital	Capital
		Assets
		Liabilities
	Ratio
		Category		Amount
	b. Recalculated	Capital
		Assets
		Liabilities (from a.)
	Ratio	EXPLAIN THE CHANGE
	Explain the change