Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:

Variable costing net operating income, last year $ 88,600
Variable costing net operating income, this year $ 96,100
Beginning inventory, last year 0 units
Ending inventory, last year 3,600 units
Ending inventory, this year 1,300 units
Fixed manufacturing overhead cost per unit this year and last year $ 7 per unit

What was the absorption costing net operating income this year?

a. $80,000
b. $100,500
c. $108,000
d. $112,200

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.