Question: Use the following information from table 2 to answer questions 3, 4, and 5. Table 2: Year 1 ending balance $50 Year 2 ending balance



Use the following information from table 2 to answer questions 3, 4, and 5. Table 2: Year 1 ending balance $50 Year 2 ending balance $50 $80 $89 ($20) $70 ($21) $65 $650 $685 Balance Sheet Account Stock Issued Cash and Reserves Allowance for Loan Losses Federal Funds - as lender Demand Deposits Treasury Bills Purchased Retained Earnings Bank Bonds issued Commercial Loans made Now Accounts Net Building/Equipment $230 $220 $70 $75 $130 $130 $500 $550 $125 $100 $140 $162 Question 5 7.2 pts Question 3: Table 2 list various accounts from a bank's balance sheet ($'s in millions). In year 2 the bank's total net income was $5 million. What was the bank's Return on Assets (ROA) in year 2? Show your answer to four decimal places in the following format .xxxx, enter 6.38% as .0638 0.0048 Question 7 7.2 pts Question 4: Using the same information in table 2 and keeping constant the assumption that the bank made $5 million of net income in year 2, what was the bank's Return on Equity (ROE) in year 2? Show your answer to four decimal places in the following format .xxxx, enter 6.38% as .0638 Use the following information from table 2 to answer questions 3, 4, and 5. Table 2: Year 1 ending balance $50 Year 2 ending balance $50 $80 $89 ($20) $70 ($21) $65 $650 $685 Balance Sheet Account Stock Issued Cash and Reserves Allowance for Loan Losses Federal Funds - as lender Demand Deposits Treasury Bills Purchased Retained Earnings Bank Bonds issued Commercial Loans made Now Accounts Net Building/Equipment $230 $220 $70 $75 $130 $130 $500 $550 $125 $100 $140 $162 Question 5 7.2 pts Question 3: Table 2 list various accounts from a bank's balance sheet ($'s in millions). In year 2 the bank's total net income was $5 million. What was the bank's Return on Assets (ROA) in year 2? Show your answer to four decimal places in the following format .xxxx, enter 6.38% as .0638 0.0048 Question 7 7.2 pts Question 4: Using the same information in table 2 and keeping constant the assumption that the bank made $5 million of net income in year 2, what was the bank's Return on Equity (ROE) in year 2? Show your answer to four decimal places in the following format .xxxx, enter 6.38% as .0638
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
