Answer:
Explanation:
Gunnar Company September 30 Cash balance per books $2,750
Add:
Notes receivable $630
Less:
Deposit in transit. $200
Bank charge. $50
Outstanding Checks. $1,250
NSF Check. $290
Balance as per bank. $1,590
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of 1.8 percent of its assets.
<h3>What do you mean by Duration Gap?</h3>
Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.
Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.
Thus, in this case, If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of 1.8 percent of its assets.
Learn more about Duration gap here:
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If it is a simple yes or no question then yes. If it is one that asks for an explanation then no. Like "Yes, but..." or "No, and..."
Hope this helps.