The 2017 balance sheet of kerber’s tennis shop, inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed long-term debt of $2.21 million. the 2018 income statement showed an interest expense of $255,000. what was the firm’s cash flow to creditors during 2018? (a negative answer should be indicated by a minus sign. enter your answer in dollars, not millions of dollars, e. g., 1,234,567.)

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.