Q1 Fig 1 shows the financial performance of two of the UK's leading supermarkets, Buy and
Save PLC and Trolleyworld PLC, for 2014. Calculate the gross profit, operating profit and
profit for the year margins.
Figure 1 - key financial data, 2014
Revenue
Gross profit
Operating profit
Profit for the year
£m)
Buy and Save Trolleyworld
64,826 18,116
4,089
1,206
2,188
949
120
647
Your workings:

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.