Rooney company sells lamps and other lighting fixtures. the purchasing department manager prepared the following inventory purchases budget. rooney’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. april’s budgeted cost of goods sold is $77,000. required complete the inventory purchases budget by filling in the missing amounts. determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.

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.