Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2022 issuing equity amounting $100. JBI advertises an annual interest of 4% for its

The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2022 issuing equity amounting $100. JBI advertises an annual interest of 4% for its savings deposits, paid annually, and free checking accounts (i.e., no maintenance fee). On the first day of operations, JBI receives a total of $150 as checking deposits and $750 as savings deposits. The bank lends $700 for an annual interest rate of 8%. It purchases treasury bonds worth $150 which earns 5% per annum. JBI maintains $100 at the Fed and keeps the remaining liquidity in cash reserves. Federal Reserve pays 4.5% interest on JBI's reserve account. However, JBI does not pay interest on checking accounts of its customers. JBI's operational expenses during its first year of operations is $18 and the corporate tax rate is 25%. Shareholders of JBI receive 10% dividends. Prepare JBI's balance sheet as at January 1, 2022 at the closure of business and find the following. . Primary Reserves = $ Total Assets= $ Secondary Reserves = $ Total Liabilities= $ Net Worth $ Equity Ratio= %.
image text in transcribed
image text in transcribed
image text in transcribed
The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2022 issuing equity amounting $100. JBI advertises an annual interest of 4% for its savings deposits, paid annually, and free checking accounts (i.e., no maintenance fee). On the first day of operations, JBI receives a total of $150 as checking deposits and $750 as savings deposits. The bank lends $700 for an annual interest rate of 8%. It purchases treasury bonds worth $150 which earns 5% per annum. JBI maintains $100 at the Fed and keeps the remaining liquidity in cash reserves. Federal Reserve pays 4.5% interest on JBI's reserve account. However, JBI does not pay interest on checking accounts of its customers. JBI's oferational expenses during its first year of operations is $18 and the corporate tax rate is 25%. Shareholders of JBI receive 10% dividends. Prepare JBI's balance sheet as at January 1, 2022 at the closure of business and find the following. - Primary Reserves =$ - Secondary Reserves =$ - Total Assets =$ - Total Liabilities =$ - Net Worth =9 - Equity Ratio= %. The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2022 issuing equity amounting $100. JBI advertises an annual interest of 4% for its savings deposits, paid annually. and free checking accounts (i.e., no maintenance fee), On the first day of operations, JBI receives a total of $150 as checking deposits and $750 as savings deposits. The bank lends $700 for an annual interest rate of 8%. It purchases treasury bonds worth $150 which earns 5% per annum. JBI maintains $100 at the Fed and keeps the remaining liquidity in cash reserves. Federal Reserve pays 4.5% interest on JBI's reserve account. However, JBI does not pay interest on checking accounts of its customers. JBI's operational expenses during its first year of operations is $18 and the corporate tax rate is 25%. Shareholders of JBI receive 10% dividends. Prepare JBI's income statement after its first year of operations and find the following. - Interest Income =$ - Net Interest Income = - Net Profit Before Taxes =$ - Net Profit After Taxes =$ - ROE= % - ROA= % - Retained Earnings =$ The Jaguar Bank of Indianapolis (JBI) starts operations on January 1, 2022 issuing equity amounting $100. JBI advertises an annual interest of 4% for its savings deposits, paid annually. and free checking accounts (i.e., no maintenance fee). On the first day of operations, JBI receives a total of $150 as checking deposits and $750 as savings deposits. The bank lends $700 for an annual interest rate of 8%. It purchases treasury bonds worth $150 which earns 5% per annum. JBI maintains $100 at the Fed and keeps the remaining liquidity in cash reserves. Federal Reserve pays 4.5% interest on JBI's reserve account. However, JBI does not pay interest on checking accounts of its customers. JBI's operational expenses during its first year of operations is $18 and the corporate tax rate is 25%. Shaneholders of JBI receive 10% dividends. A customer withdraws $170 from her savings account. To pay that amount back, the Bank sells its Bonds portfolio for $120 making a loss of $30 and withdraw another $50 from the account at Fed. Find the following. - Primary Reserves =$ - Secondary Reserves =$ - Total Assets =$ - Total Liabilities =$ - Net Worth = \$ - Equity Ratio = %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Finance Theories Practices And Simulations

Authors: Stéphane Goutte, Duc Khuong Nguyen

1st Edition

9813278374, 978-9813278370

More Books

Students also viewed these Finance questions