b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.)Liabilities and Net WorthLiabilitiesBonds and mortgagesBank loansOther loansTrade debtOtherAssetsReal assetsEquipment and softwareReal estateInventoriesTotal real assetsFinancial assetsDeposits and cashMarketable securitiesTrade and consumer creditOtherTotal financial assetsTotal$ Billion % Total$ 4,4129,5041,74416.5%35.66.5$15,66058.7%Ratio for nonfinancial firms2.6%4.08.626.141.3%$ 6821,0712,2926,964$11,009$26,669 100.0%Total liabilitiesNet worth$ Billion$ 5,3747731,3501,7504,628$13,875$12,794$26,669% Total20.2%2.95.16.617.452.0%48.0%100.0%Balance sheet of U.S. nonfinancial corporationsNote: Column sums may differ from total because of rounding error.Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, September 2018. Examine the balance sheet of commercial banks in the following table.$ Billion % Total201.228.9230.1AssetsReal assetsEquipment and premisesOther real estateTotal real assetsFinancial assetsCashInvestment securitiesLoans and leasesOther financial assetsTotal financial assetsOther assetsIntangible assetsOtherTotal other assetsTotal$Ratio of real assets to total assets$$ 876.32,032.16,627.31,201.2$10,736.9$ 416.4780.7$ 1,197.1$12,164.11.7%0.21.9%7.2%16.754.59.988.3%3.4%6.49.8%100.0%LiabilitiesDepositsLiabilities and Net WorthDebt and other borrowed fundsFederal funds and repurchase agreementsOtherTotal liabilitiesNet worthBalance sheet of FDIC-insured commercial banks and savings institutionsNote: Column sums may differ from total because of rounding error.Source: Federal Deposit Insurance Corporation, www.fdic.gov, October 2018.a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.)$ Billion % Total84.4%3.0.92.9$11,099.0 91.2%$10,270.3363.0115.0350.7$ 1,065.1 8.8%$12,164.1 100.0%

b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal pl Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other 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 $ Billion % Total Ratio for nonfinancial firms $ 4,412 9,504 1,744 $15,660 $ 682 1,071 2,292 6,964 16.5% 35.6 6.5 58.7% 2.6% 4.0 8.6 26.1 $11,009 41.3% $26,669 100.0% Total liabilities Net worth $ Billion $ 5,374 773 1,350 1,750 4,628 $13,875 $12,794 $26,669 & Total 20.2% 2.9 5.1 6.6 17.4 52.0% 48.0% 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 pl Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other 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 $ Billion % Total Ratio for nonfinancial firms $ 4,412 9,504 1,744 $15,660 $ 682 1,071 2,292 6,964 16.5% 35.6 6.5 58.7% 2.6% 4.0 8.6 26.1 $11,009 41.3% $26,669 100.0% Total liabilities Net worth $ Billion $ 5,374 773 1,350 1,750 4,628 $13,875 $12,794 $26,669 & Total 20.2% 2.9 5.1 6.6 17.4 52.0% 48.0% 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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