Here again is the balance sheet information for Cipher Bank. It will be repeated

Question

Here again is the balance sheet information for Cipher Bank. It will be repeated in future questions to make things a bit easier. Note that you can, and may have to, calculate anything marked with a "???," and anything not included or otherwise calculable $0. Assets Liabilities and Owner's Equity Buildings and furniture $900 Checking depos Cash $80 Commercial paper $500 Deposit in the Fed $320 Government agency bonds $800 oroig trom the Fe Home mortgages $1200 Loan to Bank A $400 Loans to firms $1100 Loans to households $1300 Municipal bonds $1400 US government bonds $600 Savings deposits $800 Time deposits $200 Borrowing from Bank B $500 Other liabilities $1000 Equity $??? Total assets $8600 Total liabilities and owner's equity ???

Explanation / Answer

COMPUTATION OF EQUITY IN THE BALANCE SHEET

Equity = Total assets - Total outside liabilities

Total assets = $ 8600

Total outside liabilities =$2100 + 800+200+500+1600+1000

= $6200

Therefore, Owner's equity = $8600-6200 = $2400

Total of Liabilities and Owner's equity = $ 6200 + $2400 = $8600

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