Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $6,260 Depreciation expense—Office copier $490
Office supplies expense 740 Sales discounts 16,600
Insurance expense 1,220 Sales returns and allowances 4,100
Sales 229,000 TV advertising expense 2,900
Office salaries expense 32,200 Interest revenue 710
Rent expense—Selling space 10,700 Cost of goods sold 91,300
Sales staff wages 23,400 Sales commission expense 12,000

Required:
Prepare a multiple-step income statement.

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.