2. Mean Green Bank started its first day of operations with $10 million incapital. $100 million in checkable deposits is received. The bank issues a $30million commercial loan and another $30 million in mortgages. The requiredreserves are 8%. 1) Complete current Mean Green bank's balance sheet below.AssetsLiabilitiesRequired ReservesCheckable Deposmillion$ 32Excess ReservesBank CapitalmillionI$ 60Loansmillion

Answered: 1) Complete current Mean Green bank's…

1) Complete current Mean Green bank's balance sheet below. Assets Liabilities 8. Required Reserves Checkable Depos million Is 32 Excess Reserves Bank Capital million I$ 60 Loans million

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Concept explainers

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.

Question

2. Mean Green Bank started its first day of operations with $10 million in
capital. $100 million in checkable deposits is received. The bank issues a $30
million commercial loan and another $30 million in mortgages. The required
reserves are 8%.

1) Complete current Mean Green bank's balance sheet below.
Assets
Liabilities
Required Reserves
Checkable Depos
million
$ 32
Excess Reserves
Bank Capital
million
I$ 60
Loans
million

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