Question
You are informed that bank's latest income and expense statement contained the following figures (in $ millions): Net interest income $800 Net non-interest -500
You are informed that bank's latest income and expense statement contained the following figures (in $ millions): Net interest income $800 Net non-interest -500 income Security gains 100 Suppose you also were told that bank's total interest revenue is twice as large as its total interest expense and its noninterest revenue is three-fourths of its noninterest expense. Imagine that its provisions for loan losses equal 3 percent of its total interest revenue, while its taxes generally amount to 30 percent of its net income before income taxes. Prepare bank's income statement.
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