Friendly Financial has $240 million in consumer loans with an average interest rate of 20 percent. The bank also has $156 million in home equity loans with an average interest rate of 15 percent. Finally, the company owns $41 million in corporate securities with an average rate of 12 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $406 million and the interest rate will fall to 18 percent. They also estimate that its home equity loans will fall to $140 million with an average interest rate of 15 percent, and its corporate securities portfolio will increase to $43 million with an average rate of 12 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) Interest revenue

Friendly Financial has $240 million in consumer loans with an average interest rate of 20 percent. The bank also has $156 million in home equity loans with an average interest rate of 15 percent. Finally, the company owns $41 million in corporate securities with an average rate of 12 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $406 million and the interest rate will fall to 18 percent. They also estimate that its home equity loans will fall to $140 million with an average interest rate of 15 percent, and its corporate securities portfolio will increase to $43 million with an average rate of 12 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) Interest revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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