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: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.10E
Related questions
Question
Expert Solution
Step 1
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College