Question
The following financial information pertains to the results of Future Islamic Bank at the end of 2021: Average account balances: Current accounts (Amanah) $30 million
The following financial information pertains to the results of Future Islamic Bank at the end of 2021:
Average account balances:
Current accounts (Amanah) $30 million
Equity investment account holders $110 million
Bank Equity $70 million
Property, plant and equipment and subsidiaries $40 million
Net revenue (net of expenses) generated by the above funds $20 million
Banks policy states that for liquidity purposes, the bank keeps the following percentages in cash of each fund to meet expected withdrawals:
Current accounts | 70% |
Equity investment account holders | 20% |
Bank Equity | 0% |
The banks policy states that in profitable years the accounts of investment risk reserve and profit equalization reserve should be credited by a maximum of 7% and 4%, respectively. The board decides on the amount transferred to these accounts at the end of each year. In 2020 the board decided to apply the maximum percentages stated in the policy. The profit-sharing ratio is 75% to the clients (equity of investment account holders).
Required: Do not round figures in the intermediate steps. Round your answer to the nearest cent and without commas. Your answer should be written as follow $xxxxxxxxx.xx
blank What is the size of the pool (total investment of depositors and the bank) of investment?
blank What is the size of the investment of the equity investment account holders?
blank What is the share of the mudharabah profit out of the total profit of the pool?
blank Calculate the investment risk reserve.
blank Calculate profit equalization reserve.
blank What is the banks share in mudharabah profit?
blank Calculate the profit of the equity investment account holders?
$116,000,000.00 $3,222,047.24 $800,000.00 The answer is not among the list $9,279,496.06 $127,000,000.00 The answer is not among the list The answer is not among the list $13,858,267.72 $386,645.67 The answer is not among the list $88,000,000.00 The answer is not among the list $800,000.00 The answer is not among the list $970,078.74 The answer is not among the list The answer is not among the list The answer is not among the list The answer is not among the list
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