Question
The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below: Assets Value ($m) Liquid (%) Cash
The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below:
| Assets | Value ($m) | Liquid (%) |
| Cash | 10 | 40 |
| Investments | 50 | 90 |
| Commercial Loans | 50 | -5 |
| Consumer Loans | 10 | 20 |
| Other Assets | 8 | 50 |
| Total | 128 | |
| Liabilities | Value ($m) | Volatile (%) |
| Corporate Deposits | 20 | 70 |
| Customer Deposits | 60 | 30 |
| Other Liabilities | 35 | 80 |
| Equity | 13 | |
| Total | 128 |
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a) Calculate total amount of liquid assets and total amount of volatile liabilities.
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b) Calculate Liquidity Surplus / Deficit.
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c) How this Liquidity Surplus / Deficit should be managed from Asset and Liability sides respectively?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
6th Canadian Edition
1119731828, 9781119731825
