Challenge Problem This problem focuses on bank capital management and various capital ratio measures. Following are recent balance sheet accounts for Prime First National Bank.
|
Cash assets |
$ 17 million |
Demand deposits |
$50 million |
|
Loans secured by real estate |
40 |
Time & savings deposits |
66 |
|
Commercial loans |
45 |
Federal funds purchased |
15 |
|
Government securities owned |
16 |
Trust-preferred securities |
2 |
|
Goodwill |
5 |
||
|
Bank fixed assets |
15 |
Owners” capital |
5 |
|
Total assets |
$138 million |
Total liabilities and owners” capital |
$138 million |