Question
The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Liabilities and Equity Cash $ 650 Demand deposits
The financial statements for First National Bank (FNB) are shown below:
| Balance Sheet First National Bank | ||||||||
| Assets | Liabilities and Equity | |||||||
| Cash | $ | 650 | Demand deposits | $ | 7,110 | |||
| Demand deposits from other FIs | 2,350 | Small time deposits | 10,000 | |||||
| Investments | 5,050 | Jumbo CDs | 4,200 | |||||
| Federal funds sold | 2,625 | Federal funds purchased | 3,250 | |||||
| Loans | 17,525 | Equity | 3,200 | |||||
| Reserve for loan losses | (3,125 | ) | ||||||
| Premises | 2,685 | |||||||
| Total assets | $ | 27,760 | Total liabilities/equity | $ | 27,760 | |||
| Income Statement First National Bank | |||
| Interest income | $ | 3,600 | |
| Interest expense | 2,400 | ||
| Provision for loan losses | 380 | ||
| Noninterest income | 340 | ||
| Noninterest expense | 620 | ||
| Taxes | 90 | ||
a. Calculate the dollar value of FNBs earning assets. b. Calculate FNBs ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNBs asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNBs spread. (Round your answer to 2 decimal places. (e.g., 32.16))
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Foundations Of Business Finance
Authors: Peyton Foster Roden
2nd Edition
0873932420, 9780873932424
