1- Please prepare a bank balance sheet and income statement using the following information:
Interest Income $500
Deposits 130
Bank Capital 20
Provision for loan loss 40
Loans 100
Non-interest expense 50
Securities 25
Cash on hand 10
Interest Expense 100
Bank Reserves 45
Non-interest income 75
Borrowed funds 30
Income tax expense (%) 20%
2- What is the ROA and ROE?