ATM Banc has the following liabilities and equity categories: Deposits .............. $9 million Other liabilities ............ $4

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ATM Banc has the following liabilities and equity categories:

Deposits .............. $9 million

Other liabilities ............ $4 million

Owners’ capital ............. ?

Total liabilities and capital ........ ?

a. What would be the bank’s total liabilities and capital if owners’ capital were half the size of other liabilities?

b. If total liabilities and capital were $15.5 million, what would be the amount of the owners’ capital (note: not loans)?

c. If total liabilities and capital were $14 million, and $1 million of deposits were withdrawn from the bank, what would be the amount of the owners’ capital?

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