subject
Business, 07.09.2020 01:01 zahradawkins2007

Union Planters is a Tennesee bank holding company (that is, a corporation that owns banks). (Union Planters is now part of Region Bank). Union Planters manages $32 billion in assets, the largest of which is its loan portfolio at $19 billion. In addition to its loan portfolio, however, like other banks it has significant debt investments. The nature of these investments varies from short-term in nature to long-term in nature. As a consequence, consistent with the requirements of accounting rules, Union Planters reports its investments in two different categories – trading and available-for-sale. The following facts were found in a recent Union Planters’ annual report. (all dollars in millions) Amortized cost Gross Unrealized gain Gross Unrealized losses Fair Value

Trading account assets $275 $275
Securities available for sale $8,209 $108 $15 $8302
Net income $224

Net securities gains (losses) $(9)

Required:
a. Why do you suppose Union Planters purchases investments, rather than simply making loans? Why does it purchase investments that vary in nature both in terms of their maturities and in type (debt versus stock)?
b. How much Union Planters account for its investments in each of the two categories?
c. In what ways does classifying investments into two different categories assist inventors in evaluating the profitability of a company like Union Planters?
d. Suppose that the management of Union Planters was not happy with its net income for the year. What step could it have taken with its investment portfolio that would have definitely increased reported profit? How much could it have increased reported profit? Why do you suppose it chose not to do this?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 18:10, hellokitty1647
Nestlé, a global food company headquartered in switzerland, provides its customers in each country with highly differentiated and customized products that fit the tastes and preferences of the local population. nestlé invests considerable resources in developing and maintaining a strong brand name that complements its high-quality product offerings across the globe. which of the following best fits nestlé's global strategy? 1. international strategy2. multi-domestic strategy3. global standardization strategy4. transnational strategy
Answers: 2
image
Business, 22.06.2019 04:00, cameronbeaugh
Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.
Answers: 1
image
Business, 22.06.2019 06:00, Wocking310
Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)
Answers: 1
image
Business, 22.06.2019 12:40, abilovessoftball
Which of the following tasks would be a line cook's main responsibility? oa. frying french fries ob. chopping onions oc. taking inventory of stocked dry goods od. paying invoices
Answers: 2
You know the right answer?
Union Planters is a Tennesee bank holding company (that is, a corporation that owns banks). (Union P...

Questions in other subjects: