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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

See similar textbooks

Related questions

Q: The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue…

A: To calculate the required ratios, let's first define the terms:EBITA (Earnings Before Interest,…

Q: Use the information below for Harding Company to answer the question that follow. Harding Company…

A: Current assets means those assets which are convertible in to cash with 12 months. Long term…

Q: Calculate: Net noninterest margin Net operating margin Earnings spread

A: Net Non Interest Margin = Net Non interest income/Total Assets Net operating margin = Net Operating…

Q: a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) b.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets:…

A: Answer Current ratio = current assets / current liabilities Debt ratio = total debt / total…

Q: The balance sheet for Zachary Corporation follows: Current assets. Long-term assets (net) Total…

A: Current ratio is the measure that helps the entity to know the liquidity position of the entity. It…

Q: Use the information below for Harding Company to answer the question that follow. Harding Company…

A: Quick assets = Accounts receivable + Cash + Marketable securities or Quick assets = Current Assets -…

Q: CALCULATE THE WEIGHTED AVERAGE COSTS OF CAPITAL Short-Term Liabilities: COST Suppliers 1,240,000.00…

A: Weighted Average Cost OF Capital (WACC) =E / (E + D) * Ke + D / (E + D) * Kd E = Equity Value D =…

Q: Evaluating Bank performance -Problem One - The capitalization ratio is: Below is the financial data…

A: Capitalization ratio is a ratio that evaluates the proportion of the operations of the company is…

Q: We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current…

A: Formua used Receivables Turonver Ratio = Credit Sales/Average ReceivablesCurrent Ratio = Current…

Q: The balance sheet for Baird Corporation follows: Current assets Long-term assets (net) Total assets…

A: Let's compute the required ratios based on the given balance sheet: Working Capital: Working capital…

Q: Using the following balance sheet, calculate net working capital: Cash Marketable Securities…

A: Net Working Capital is the difference between the Current assets & Current Liabilties.Net…

Q: Examine the belance sheet of commercial banks in the tonowing tabie. Lia e andSe orh Asseta Total…

A: Real assets define those valuable property which contain the characteristic of physical presence in…

Q: The Balance Sheet for First Union Bank are shown below: Balance Sheet (in millions) Assets Cash and…

A: Earning assets: The earning assets are the investments for the business that produces income for the…

Q: Use the information below for Harding Company to answer the question that follow. Harding Company…

A: Current assets are those assets that are expected to be used or sold within one year of time, i.e.…

Q: Problem 8-9A (Algo) Calculate and analyze ratios (L08-6) Selected financial data regarding current…

A: Current ratio = Current Assets/ Current Liabilities Acid Test ratio = (Current Assets -…

Q: The balance sheet for Adams Corporation follows: Current assets Long-term assets (net) Total assets…

A: Financial ratios are quantitative metrics used to evaluate and analyze the financial performance,…

Q: Selected XYZ financials (in dollars) Gross income 25,240,000 24,324,000 18,785,000 2,975,000 Total…

A: Asset turnover = Total sales/Total assets Total sales = 24,324,000 Total assets = 10,550,000

Q: Q7 Prepare common size Balance Sheet of XRI Ltd. from the following information: Particulars I.…

A: Common size balance sheet is one of useful tool used in financial statement analysis. Under this,…

Q: Suppose that: Banks Debt Ratio Total Liabilities Total Capital Net Income Bank Alpha 1.50…

A: The debt ratio means the amount that business has to pay out in the long term.

Q: The balance sheet for Shankland Corporation follows: 000 009 $ 000 '006 Current assets Long-term…

A: Working capital = current assets - current liabilities

Q: b. What is the ratio of real assets to total assets for nonfinancial firms in the following table?…

A: Real assets are the types of assets that include the building, equipment, and land owned/leased by…

Q: Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio…

A: The following formulas used as follows:-1)working capital = Current assets - Current…

Q: What does tangible common equity reflect? Suppose that a bank has common stock of par value $200m…

A: TCE is also written as tangible common equity. It is used to see the strength of the company. Given…

Q: We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current…

A: Sales (Credit) = $2,068,000Cash = $150,000Inventory = $923,000Current Liabilities = $763,000Asset…

Concept explainers

Liquidity Risk Exposure

Answer: c

Question

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.)
$ Billion
Liabilities and Net Worth
Liabilities
Bonds and mortgages
Bank loans
$ 5,364
758
1,338
Other loans
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
$ Billion % Total
$ 4,402
16.4%
36.3
9,749
1,734
6.5
$15,885
59.1%
Ratio for nonfinancial firms
$ 677 2.5%
1,056
3.9
2,282
8.5
6,968
25.9
$10,983 40.9%
$26,868 100.0%
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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Computation:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Required: a. What is the ratio of real assets to total assets? (Hint: for this question, only include those listed under "Real assets") b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? Assets Real assets Equipment and intellectual property Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Required A $ Billion $ 8,345 14,423 2,724 $ 25,492 Required B $ 2,333 4,059 4,075 14,005 $ 24,472 $ 49,964 % Total 16.7% 28.9 5.5 51.0% 4.7% 8.1 8.2 28.0 49.0% 100.0% Liabilities and Net Worth Liabilities Debt securities Bank loans & mortgages Other loans Trade debt Other Total liabilities Complete this question by entering your answers in the tabs below. Net worth $ Billion Trade and consumer credit Other Total financial assets TOTAL 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,…
Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 245 Current liabilities Long-term debt 630 Other liabilities Equity $ 875 Required: a. What is the company's debt-equity ratio? (Hint: debt = Current liabilities, Long-term debt, and Other liabilities) Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 170 215 140 350 $ 875 a Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratio
Give true solution for this accounting question
Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110 510 Net working capital $ 620 a. Debt-equity ratio b Long-term debt-to-capital ratio C. d. Current ratio a. What is the company's debt-equity ratio? (Round your answer to 2 decimal places.) b. What is the ratio of total long-term debt to total long-term capital? (Round your answer to 2 decimal places.) c. What is its net working capital? d. What is its current ratio? (Round your answer to 2 decimal places.) Current liabilities Long-term debt Other liabilities Equity $ 65 275 80 200 $ 620
what is the answer of a?
Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to two decimal places. Required: 1. What is its current ratio? 2. What is its quick ratio? 3. What is its cash ratio? 4. Discuss NWAs liquidity using these ratios.
Earning.
Use the financial ratios of company A and company B to answer the questions below. Company A Company B Yr t+1 Year t Yr t+1 Year t Current ratio 0.55 0.59 0.56 0.55 Accounts receivable turnover 6.22 6.25 5.06 4.87 Debt to total assets 40.5% 40% 67.8% 65.9% Times interest earned 8.80 30.6 5.97 6.33 Free cash flows (in millions) ($3,819) $3,173 $168 $550 Return on stockholders’equity 7.7% 7.7% 26.6% 23.3% Return on assets 4.3% 4.3% 8.9% 7.9% Profit margin…
Exercise n°6. Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets $ 100 $ 60 Long-term assets 500 280 70 190 $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) b-1. What are Geomorph's net working capital and total long- term capital? b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.) Exercise n°7. Magic Flutes has total receivables of $3,000, which represent 20 days' sales. Total assets are $75,000. The firm's operating profit margin is 5%. Assume a 365-day year. 3/4 a. What is the firm's sales-to-assets ratio? (Round your answer to 2 decimal places.) b. What is the firm's return on assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Exercise n°8. a. If a firm's assets of $10,000 represent 200 days' sales, what is its annual sales? Assume a 365-day…
The financial statements for BSW National Bank (BSWNB) are shown below: What is the dollar value of earning assets held by BSWNB? What is the dollar value of interest-bearing liabilities held by BSWNB? What is BSWNB’s total operating income? Calculate BSWNB’s asset utilization ratio. Calculate BSWNB’s net interest margin.
5. Know the calculations for all of the following ratios (see ratio sheet that can be used on the exam) and know the category (listed in Question 4) they fall in: Formula Category/Use Ratio Working Capital Current Assets - Current Liabilities Net credit sales/Average Accounts Receivable Turnover accounts receivable Asset Turnover Net sales/Average total assets Net income/Average total stockholders' equity Total liabilities/Total stockholders equity Net income/Net sales Return on Equity (ROE) Debt to equity Return on Sales (ROS) (also known as Net Margin Current Assets/Current Liabilities Cost of goods sold/Average inventory Quick assets/Current Current Ratio Inventory Turnover Quick Ratio liabilities Dividend Yield Dividends per share/Market price per share Net earnings available for common stock/Number of outstanding common shares Net income/Average total Earnings per Share (EPS) Return on Investment (ROI) assets Price Earnings Ratio (P/E) Market price per share/Earnings per share…
Please provide correct answer this question general accounting