Current assets $17,000 $49,000 Noncurrent assets 26,000 123,000 Total assets $43,000 $172,000 Current liabilities $10,000 $54,000 Long-term debt 17,400 43,000 Total stockholders’ equity 15,600 75,000 Total liabilities and stockholders’ equity $43,000 $172,000 Beginning-of-Year Balances Total assets $43,000 $162,000 Total stockholders’ equity 14,100 64,000 Current liabilities 10,800 54,000 Total liabilities 28,900 98,000 Other Data Average net accounts receivable $7,800 $3,800 Average inventory 7,100 33,400 Net cash provided by operating activities 5,700 27,400 Capital expenditures 1,800 12,000 Dividends 450 4,400 For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e. g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e. g. 5,275 and all answers to 1 decimal place, e. g. 1.8 or 1.83%.)

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.