Question 13 Castle State Bank has the following financial informatioin Balance S

Question

Question 13 Castle State Bank has the following financial informatioin Balance Sheet Income Statement $200 Interest Income Cash Securities Investments Net Loans Net Premises and Equip Total Assets Deposits Non-Deposit Borrowings* Equity Capital Total Liabilities and Equity $400 ($150) $50 ($100) (S60) $140 ($40) (S45) $55 $600 Interest Expenses $1350 Non-Interest Income $300 $2450 $1100 $1000 Non-Interest Expenses Provision for Loan Losses Pre Tax Net Operating Income Securities Gains (Losses) $350 Taxes $2450 Net Income All Purchased Funds Use this information to calculate Castle State Bank's asset utilization ratio A. 18.37% B. 20.45% C. 12.22% D. 7.33% E. None of the other responses are correct

Explanation / Answer

Asset utilization ratio = total revenue / Total assets

                                         = (Interest income + Non interest income) / total assets

                                        = (400+50)/2450

                                                = 18.37%

Option A is correct.

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