Broncs Bank has the following liabilities and equity categories: Deposits: 12 mi

Question

Broncs Bank has the following liabilities and equity categories:

Deposits:                                             12 million

Other liabilities:                                   4 million

Owners’ Capital                                  ?

Total Liabilities and Capital                ?

What would be the bank’s total liabilities and capital if owners’ capital were 75% the size of Other Liabilities?
If Total Liabilities and Capital were 18 million what would be the size of Total Deposits?
If Total Liabilities and Capital were 23 million and 2 million of Cash were withdrawn from Deposits, how would that change Total Owners’ Capital?

Explanation / Answer

Owners

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