The records of Muted Color Engraving reveal the following EEB Compute cash fows from operating activities by the indirect method for year ended December 31, 2018 (Use parentheses or a minubelor ner aero) subtracted and to show net cash used for operating activities If a box is not used in the table, leave the box empty, do not select a label or year ended December 31, 2018 (Use parentheses or a minus sign for numbers to be enter a zero) Muted Color Engraving Statement of Cash Flows (Partial) Year Ended December 31, 2018 Cash Flows from Operating Activities Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities Net Cash Provided by (Used for) Operating Activities Data Table s 35,000 Depreciation expense Net income Sales revenue Loss on sale of land Acquisition of land s 11,000 24000 8,000 51,000 Decrease in current liabilitiers Increase in current assets other than cash 6500 38,000

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.