Marco nelson opened a frame shop and completed these transactions: marco started the shop by investing $40,700 cash and equipment valued at $18,700 in exchange for common stock. purchased $140 of office supplies on credit. paid $1,900 cash for the receptionist's salary. sold a custom frame service and collected $5,200 cash on the sale. completed framing services and billed the client $270. what was the balance of the cash account after these transactions were posted?

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.