3.5 Following are selected balance sheet accounts for Third State Bank: vault cash = $2 million; U.S. government securities = $5 million; demand deposits = $13 million; nontransactional accounts = $20 million; cash items in process of collection = $4 million; loans to individuals = $7 million; loans secured by real estate = $9 million; federal funds purchased = $4 million; and bank premises = $11 million. a. From these accounts, select only the asset accounts and calculate the bank’s total assets.b. Calculate the total liabilities for Third State Bank.c. Based on the totals for assets and liabilities, determine the amount in the owners’ capital account.3.10. Let’s assume that you have been asked to calculate risk-based capital ratios for a bank with the following accounts:Cash _ $5 millionGovernment securities _ $7 millionMortgage loans _ $30 millionOther loans _ $50 millionFixed assets _ $10 millionIntangible assets _ $4 millionLoan-loss reserves _ $5 millionOwners’ equity _ $5 millionTrust-preferred securities _ $3 millionCash assets and government securities are not considered risky. Loans secured by real estate have a 50 percent weighting factor. All other loans have a 100 percent weighting factor in terms of riskiness.a. Calculate the equity capital ratio.b. Calculate the Tier 1 Ratio using risk-adjusted assets.c. Calculate the Total Capital (Tier 1 plus Tier 2) Ratio using risk-adjusted assets.3.11 Challenge Problem This problem focuses on bank capital management and various capital ratio measures. Following are recent balance sheet accounts for Prime First National Bank.$ 17 million