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s and all Liabilities double.Solution: Total Equity Capital = Total Assets Total Liabilities = ($429 X 2) ($380 X 2) = $858 $760 = $98Therefore, Total Equity, as expected, would also double.Undivided Profits = Total Equity Capital Capital Reserves Surplus Common Stock – Preferred Stock = $98 $8 $11 $12 $3 = $64This represents an increase of $49 ($64 $15), or over a 300% increase, and results from the doubling of total equity without concurrent increases in Common or Preferred Stock Issues, which would also cause changes in Capital Reserves and Surplus.48. The balance sheet for River39。s Undivided Profits = Net Ine After Taxes Common Dividends = $31 $11 = $20Alternative Scenario 1:Given: Gap between Total Interest Ine and Total Interest Expenses decreases by 10 percent.Solution: Net Ine After Taxes = [($271 $205) X ] + $23 $40 $13 $5= $ + $23 $40 $13 $5 = $This is a decrease of $ ($31 $) or a % decrease as a result of a percent decrease in the interest revenueexpense gap.Alternative Scenario 2:Given: Provision for Loan Loss triples (from $13 to $39).Solution: Net Ine After Taxes = $271 $205 + $23 $40 $39 $5 = $5This is a decrease of $26 ($31 $5) or an % decrease.43. The items requiring calculation and the dollar figures required are:Total Assets = Total Liabilities + Stockholders39。Problems41.