Question
The following information is for Assala National Bank: Interest income $2,317.50 Interest expense $1,545.00 Total assets $45,000.00 Securities losses or gains $21.00 Earning assets $40,000.00
The following information is for Assala National Bank:
Interest income
$2,317.50
Interest expense
$1,545.00
Total assets
$45,000.00
Securities losses or gains
$21.00
Earning assets
$40,000.00
Total liabilities
$38,000.00
Taxes paid
$16.00
Shares of Common Stock outstanding
5,000
Noninterest income
$824.00
Noninterest expense
$927.00
Provision for loan losses
$250.00
a. Calculate the net income.
b. Calculate the Return on Equity.
c. Calculate the Return on Assets.
d. Calculate the earnings per share.
Formulas:
ROE = Net Income/Total Equity
Return on Assets (ROA) = Net income/ Total Assets
Earnings per share = Net Income/Total number of outstanding shares
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
