Reference no: EM131446992
Assignment
1. Classify the following ratios as liquidity ratios, earning asset ratios, financial structure ratios, operating ratios, profitability ratios, or spread ratios.
a. Total loans/total assets
b. Total assets/net worth
c. Operating expenses/operating income
d. Net interest margin
e. Burden/earning assets
f. Loans to individuals/total assets
g. Interest income/earning assets
h. U.S. Treasury bills/total assets
i. Occupancy expenses/total operating expenses
j. Large negotiable CD/total liabilities
k. Earnings per share
l. Interest expense/interest-bearing liabilities
m. Noninterest income/Noninterest expense
n. Subordinated debenture/total liabilities
o. Real estate loans/total assets
p. Federal funds and RPs/total assets
q. Service charges/total noninterest income
r. Net income/total assets
2. Classify each of the following as a source, use or neither of bank funds.
a. an increase in transaction deposits
b. a decrease in vault cash
c. a decrease in premise and equipment
d. an increase in Treasury securities
e. an increase in federal funds sold
f. a decrease in subordinate debenture
g. an increase commercial and industrial loans
h. a decrease in municipal securities
i. an increase in depreciation expense
j. an increase in real estate loans
k. a decrease in loan commitments
3. Arrange the following items into a proper income statement and determine the bank's net profit.
a. Interest paid on consumer time deposits $100,000.
b. Interest paid on jumbo CDs $101,000
c. Interest received on U.S. Treasury and agency securities $44,500
d. Fees received on mortgage originations $23,000
e. Dividends paid to stockholders of $0.50 per share on 5000 shares
f. Provision for losses $18,000
g. Interest and fees on loans 189,700
h. Interest paid on checking accounts $33,500
i. Interest received on municipal bonds $60,000
j. Employees' salaries and benefits $145,000
k. Purchase of new computer system $50,000
l. Service charges receipts from customers $41,000
m. Occupancy expense for bank building $22,000
n. Taxes at 34% of taxable income are paid
o. Trust department income equals $15,000.
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