Reference no: EM131717406

Question: See if you can determine the amount of rosebush state bank's current net income after text from the figure below (stated in millions of dollars) and the amount of its retained earning from current income that it will be able to reinvest in the black. (be sure to arrange all the figures given in correct sequence to derive the bank's report of income)

Effective tax rate                                                                                       30%

Interest and fees on loans                                                                            $75

Employee wages, salaries, and benefits                                                             13

Interest and dividends earned on government bonds and notes                               9

Provision for loan losses                                                                                   8

Overhead expenses                                                                                         3

Service charges paid by depositors                                                                     5

Security gains                                                                                                 3

Interest paid on federal funds purchased                                                              9

Payment of drvidends of $2 per share on I million outstanding
shares to be made to common stockholders

Interest paid to customers holding time and savings deposits                                   34

Trust department fees                                                                                        3