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 Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter13: Marketable Securities And Derivatives
Section: Chapter Questions
Problem 27P
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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 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
$ 4,412
9,504
1,744
16.5%
35.6
6.5
$15,660
58.7%
Ratio for nonfinancial firms
2.6%
4.0
8.6
26.1
41.3%
$ 682
1,071
2,292
6,964
$11,009
$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.
Transcribed Image Text: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 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 $ 4,412 9,504 1,744 16.5% 35.6 6.5 $15,660 58.7% Ratio for nonfinancial firms 2.6% 4.0 8.6 26.1 41.3% $ 682 1,071 2,292 6,964 $11,009 $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.
Examine the balance sheet of commercial banks in the following table.
$ Billion % Total
201.2
28.9
230.1
Assets
Real assets
Equipment and premises
Other real estate
Total real assets
Financial assets
Cash
Investment securities
Loans and leases
Other financial assets
Total financial assets
Other assets
Intangible assets
Other
Total other assets
Total
$
Ratio of real assets to total assets
$
$ 876.3
2,032.1
6,627.3
1,201.2
$10,736.9
$ 416.4
780.7
$ 1,197.1
$12,164.1
1.7%
0.2
1.9%
7.2%
16.7
54.5
9.9
88.3%
3.4%
6.4
9.8%
100.0%
Liabilities
Deposits
Liabilities and Net Worth
Debt and other borrowed funds
Federal funds and repurchase agreements
Other
Total liabilities
Net worth
Balance sheet of FDIC-insured commercial banks and savings institutions
Note: 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 % Total
84.4%
3.0
.9
2.9
$11,099.0 91.2%
$10,270.3
363.0
115.0
350.7
$ 1,065.1 8.8%
$12,164.1 100.0%
Transcribed Image Text:Examine the balance sheet of commercial banks in the following table. $ Billion % Total 201.2 28.9 230.1 Assets Real assets Equipment and premises Other real estate Total real assets Financial assets Cash Investment securities Loans and leases Other financial assets Total financial assets Other assets Intangible assets Other Total other assets Total $ Ratio of real assets to total assets $ $ 876.3 2,032.1 6,627.3 1,201.2 $10,736.9 $ 416.4 780.7 $ 1,197.1 $12,164.1 1.7% 0.2 1.9% 7.2% 16.7 54.5 9.9 88.3% 3.4% 6.4 9.8% 100.0% Liabilities Deposits Liabilities and Net Worth Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Net worth Balance sheet of FDIC-insured commercial banks and savings institutions Note: 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 % Total 84.4% 3.0 .9 2.9 $11,099.0 91.2% $10,270.3 363.0 115.0 350.7 $ 1,065.1 8.8% $12,164.1 100.0%
Expert Solution
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Real assets are the types of assets that include the building, equipment, and land owned/leased by the company. These assets are helpful in carrying out production activities. The production of goods takes place with the help of these assets. 

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