Son Bank has deposits of $80 million and equity of $20 million. The CRR is 7% of
Question:
Son Bank has deposits of $80 million and equity of $20 million. The CRR is 7% of deposits and SLR, 18%. An amount of $5 million is invested in marketable securities and the balance in long term loans. Return on SLR is 8.5%, marketable securities, 9%, long term loans, 14%, respectively. The cost of deposits is 7%. Non-interest cost stand at $1,600,000 while the non-interest income is $1,500,000, for the year just completed. Tax rate is 38% and there are 1,200,000 common shares outstanding. Annual preferred dividend is $700,000. Common dividends are $1,700,000 for this year and the opening balance of Retained Earnings is $2,500,000 (this amount in included in the total equity of $20.0 million).
Required:
Draw up the balance sheet of Soneri Bank from the above data.
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany