Cake is a product of the chester company which is primarily sold in the americas budget segment. chester starts to create their sales forecast by assuming all policies (r& d, marketing, and production) for all competitors are equal this year over last. for this question assume that all 1,207,141 units of cake in the americas region are sold in the americas budget segment. if the competitive environment remains unchanged what will be the cake's demand next year? growth % for budget america is 5%.

1,267,498

1,840,890

2,534,997

1,207,141

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.