Using the worksheet to prepare financial statementsAnswer the following questions:RequirementsL What type of normal balance does the Retained Earnings account have-debit or credit?2 Which type of income statement account has the same type of balance as the Retained Earnings account?3. Which type of income statement account has the opposite type of balance as the Retained Earnings account?4- Wait do we call the difference between total debits and total credits on the income statement section of thewo eet?

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.