Blue Moon National Bank holds assets and liabilities whose a…

Blue Moon National Bank holds assets and liabilities whose average durations and dollar amounts are as shown in this table: Assett & Liability Items Avg. Duration (years) Dollar Amount (millions)  Investment-grade bonds  15 $65.00  Commercial loans  3  400  Consumer loans  7 250  Deposits 1.25  600  Non-deposit borrowings  0.50  50 What is the weighted-average duration of Blue Moon’s asset portfolio and liability portfolio?

The Sea Level Bank has Gross Loans of $1 billion with an ALL…

The Sea Level Bank has Gross Loans of $1 billion with an ALL account of $85 million. Two years ago the bank made a loan of $12 million to finance the Sunset Hotel. Two million dollars in principal was repaid before the borrowers defaulted on the loan. The Loan Committee at Sea Level Bank believes the hotel will sell at auction for $7 million and they want to charge off the remainder immediately. After the charge off, what is the dollar figure for ALL assuming no other transactions?

You were informed that a bank’s latest income and expense st…

You were informed that a bank’s latest income and expense statement contained the following figures (in $ millions): Net interest income $800 Net noninterest income -500 Pretax net operating income 372 Security gains 100 Increases in bank’s undivided profits 246.40 Suppose you also were told that the bank’s total interest income is twice as large as its total interest expense and its non-interest income is ¾ of its non-interest expense. Imagine that its provision for loan losses equals 3% of its total interest income, while its taxes generally amount to 30% of its net income before income taxes. What is the total noninterest income and total noninterest expense:

Olsen Company sells paper products to restaurants and stores…

Olsen Company sells paper products to restaurants and stores across the country. Recently Olsen purchased a new machine for $100,000 by paying cash of $20,000 and signing a note payable for the remainder. How is this transaction reported on the statement of cash flows?

Dr. Brady’s sparkling water company “El Croix” claims to hav…

Dr. Brady’s sparkling water company “El Croix” claims to have “Twice as much flavor as La Croix!” This claim has not been supported scientifically so La Croix was very upset and asked for an investigation to commence. Who would be in charge of regulating Dr. Brady’s false claim?