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 Trade and consumer credit Other Total financial assets TOTAL $ Billion $ 8,345 14,423 2,724 $ 25,492 $ 2,333 4,059 4,075 14,005 $ 24,472 $ 49,964 Balance sheet of U.S. nonfinancial corporations % 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 Net worth $ Billion $ 7,374 1,807 1,932 3,086 9,637 $ 23,836 $ 26,128 $ 49,964 % Total 14.8% 3.6 3.9 6.2 19.3 47.7% 52.3% 100.0%

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 Trade and consumer credit Other Total financial assets TOTAL $ Billion $ 8,345 14,423 2,724 $ 25,492 $ 2,333 4,059 4,075 14,005 $ 24,472 $ 49,964 Balance sheet of U.S. nonfinancial corporations % 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 Net worth $ Billion $ 7,374 1,807 1,932 3,086 9,637 $ 23,836 $ 26,128 $ 49,964 % Total 14.8% 3.6 3.9 6.2 19.3 47.7% 52.3% 100.0%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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