Question

Missing amounts from balance sheet and income statement data one item is omitted in each of the following summaries of balance sheet and income statement data for four different corporations, al, co, ks, and mt. Enter the missing amounts. Line item description al co ks mt beginning of the yearAssets AL: $272,400, CO: $318,700, KS: $114,400, MT: $__________ . Liabilities 163,400 165,700 91,500 153,200 end of the year: assets 337,800 446,200 125,800 316,700 liabilities 147,100 140,200 91,500 173,700 during the year: Additional issue of capital stock AL: $__________, CO: $63,700, KS: $11,400, MT: $51,100 Dividends AL: $19,100, CO: $19,100, KS: $__________, MT: $74,900

Revenue AL: $89,900, CO: $__________, KS: $132,700, MT: $142,900 Expenses 49,000 82,900 140,700 163,400

Answer 1

Changes in Acme Bank's balance sheet depend on whether the Federal Reserve is buying or selling Treasury bonds. In an open market purchase, reserves increase and loans may rise if the bank lends out the new reserves. For an open market sale, reserves are reduced and loans may need to be decreased to maintain required reserves.

Step-by-step explanation:

The question involves understanding balance sheet transactions and the impact of Federal Reserve operations on a bank's balance sheet, which falls under the subject of Business and, more specifically, banking and finance. In the scenario provided, Acme Bank's balance sheet is affected by either an open market purchase or open market sale conducted by the Fed.

For the case of an open market purchase, when the Fed buys $10 million in Treasury bonds from Acme Bank, Acme's assets in bonds decrease, while reserves increase by the amount of the bond sale. If Acme then lends out these new reserves, its loans increase and the reserves return to their prior level less any reserves required to be held against the new deposits created by the loan.