Here again is the balance sheet information for Cipher Bank

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 ???

Solution

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