CEPEDA CORPORATION Income Statement (Partial) choose the accounting period select an income statement item $enter a dollar amount 88900 select an opening name for section two select an income statement item $enter a dollar amount 5460 select an income statement item enter a dollar amount 77770 select an income statement item enter a subtotal of the two previous amounts 83230 select between addition and deduction: select an income statement item enter a dollar amount (7860) select a closing name for section two enter a subtotal of the two previous amounts 75370 select a closing name for this statement $enter a total net income or loss amount 13530

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.