Option #1: Creating Financial Statements
In this assignment, you will create a Balance Sheet and Income Statement for a bank. Below are accounts and balances for 2014 year-end of ABC Bank, Inc.
Note that the Retained Earnings account has not yet been adjusted for 2014 net income and dividends so you will have to compute the year-end balance in Retained Earnings for the Balance Sheet.
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In $000's
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Cash & due from banks
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21,860
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Common stock
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9,136
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Dividends paid [2]
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20,010
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Employee expenses
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28,804
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Fed. Funds and reverse repurchases
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137,313
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Fee income
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23,930
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Gain from security trading
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3,064
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Goodwill & other assets
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141,341
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Gross loans and leases
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846,833
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Income tax expense
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9,104
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Interest expense
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5,161
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Interest income
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48,391
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Loan loss allowance
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17,060
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Long-term bonds payable
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127,379
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Miscellaneous other income
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15,862
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Other borrowed funds
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57,175
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Other expense
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21,594
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Other liabilities
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76,668
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Preferred stock
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12,883
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Provision for loan losses
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7,217
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Retained Earnings [1]
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77,733
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Securities
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292,681
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Surplus
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59,802
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Total deposits
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1,002,835
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1. Prepare a formal Income Statement (Report of Income) and Balance Sheet (Report of Condition) for the bank using Excel. You do not need to break down assets or liabilities into subsections. Note that all values are in thousands of dollars. You can skip adding the zeroes if you note the values correctly.
2. Go to sec.gov and click on "Filings" and you get a drop-down box. Click on "Company Filings Search." In the Fast Search box (right side), type in ALL to get the SEC filings for Allstate Corporation (primarily an insurance company). Find the most recently filed 10K (interactive data) and then click on "financial statements" and open the firm's Consolidated Balance Sheet and also the firm's Consolidated Statement of Income. Observe the differences between the statements of an insurance company and those of a bank.
Write a short essay commenting on those differences. If you do Part 1 on an Excel sheet, you should put your essay on a new page in the same file so there is only one file submitted for this assignment.
Your paper must meet the following requirements:
- Be 3-4 paragraphs in length.
- Follow the CSU-Global Guide to Writing and APA Requirements. Each paper should include an introduction, a body with at least two fully developed paragraphs, and a conclusion.
- Be clearly and well written using excellent grammar and style techniques. Be concise. Be logical. You are being graded in part on the quality of your writing. If you need assistance with your writing style, start with Tools for Effective Writing at the CSU-Global Library, accessible from the Library's homepage.
Refer to the Critical Thinking Rubric in the Module 3 Folder for more information on expectations for this assignment.