b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal pla $Billion % Total $ Billion Liabilities and Net Worth Liabilities $ 4,402 Bonds and mortgages 9,749 Bank loans $ 5,364 758 1,338 1,734 Other loans $15,885 Trade debt 1,738 Other 4,608 $13,806 Assets Real assets Equipment and software Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total 16.4% 36.3 6.5 59.1% Ratio for nonfinancial firms $ 677 1,056 2,282 6,968 25.9 $10,983 40.9% $26,868 100.0% 2.5% 3.9 8.5 Total liabilities Net worth $13,062 $26,868 % Total 20.0% 2.8 5.0 6.5 17.2 51.4% 48.6% 100.0% Balance sheet of U.S. nonfinancial corporations Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal pla $Billion % Total $ Billion Liabilities and Net Worth Liabilities $ 4,402 Bonds and mortgages 9,749 Bank loans $ 5,364 758 1,338 1,734 Other loans $15,885 Trade debt 1,738 Other 4,608 $13,806 Assets Real assets Equipment and software Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total 16.4% 36.3 6.5 59.1% Ratio for nonfinancial firms $ 677 1,056 2,282 6,968 25.9 $10,983 40.9% $26,868 100.0% 2.5% 3.9 8.5 Total liabilities Net worth $13,062 $26,868 % Total 20.0% 2.8 5.0 6.5 17.2 51.4% 48.6% 100.0% Balance sheet of U.S. nonfinancial corporations Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 33CE: Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to...

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