Given the following information on the revenues and expenses of First National B

Question

Given the following information on the revenues and expenses of First National Bank, determine the bank's net income after taxes for the year just concluded.
Salaries and employee benefits $80,000 Applicable income taxes $50,000
Interest on deposits 170,000 Occupancy costs 11,000
Interest on loans 320,000 Provision for loan losses 22,000
Income from the U.S. Treasury 75,000 Miscellaneous expenses 8,000
securities Interest on municipal securities 86,000
Extraordinary items, net -0- Service charges on deposits 10,000
Interest on nondeposit borrowings 30,000 Miscellaneous operating revenues 13,000
Net securities gains -0-

Explanation / Answer

Revenues: Interest on loans 320,000 Income from Treasuries 75,000 Interest on Munies 86,000 Service charges on deposits 10,000 Misc revenues 13,000 Total Revenues 504,000 Expenses: Salaries 80,000 Interest on deposits 170,000 Interest on n/d borrowings 30,000 Occupational cost 11,000 (whatever that is, rent?) Provision for loan losses 22,000 Misc expenses 8,000 Total expenses 321,000 Income before taxes 183,000 Income taxes 50,000 Net income after taxes 133,000

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