The Coppock Bank Has $34,000,000 in Deposits

question 162

Multiple Choice

The Coppock Bank has $34,000,000 in deposits.If borrowings are $7,000,000,reserves are $3,500,000,and owner's equity is $2,000,000,what are the bank's total liabilities and net worth?

• A) $46,500,000
• B) $21,500,000
• C) $24,000,000
• D) $43,000,000
• E) $43,500,000

Understand how business activities affect operating cash flow.

Appreciate the role of financial decision-making in enhancing shareholder value.

Understand the concept of realized capital gains and their calculation.

Comprehend how cash flows to creditors are impacted by financial activities.

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Definitions:

Purchase Cost

Purchase cost includes all the expenses that a company incurs to acquire goods or services, including price, taxes, shipping, and handling fees.

Total Asset Turnover

An efficiency ratio indicating how effectively a company uses its assets to create sales, calculated by comparing its net sales to its average total assets.

Net Sales

The revenue a company earns from sales once it subtracts returns, allowances for damaged or missing products, and discounts.

Asset Efficiency

A measure of how effectively a company uses its assets to generate revenue.