The ratio of the real asset to total asset is to be determined. Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources. Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

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Bethesda Mining Company reports the following balance sheet information for 2021 and 2022: Assets Current assets 2021 BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable 2021 $ 190,422 85,520 2022 Cash Accounts receivable Inventory $ 47,858 61,781 124,912 $ 60,783 82,139 190,747 Total $ 275,942 Total $ 234,551 $ 333,669 Long-term debt $ 238,000 Owners' equity Fixed assets Common stock and paid-in surplus Accumulated retained earnings $ 217,000 161,656 Net plant and equipment Total assets $ 658,047 $ 589,628 $ 378,656 $ 892,598 $ 923,297 Total liabilities and owners' equity $ 892,598 Total 2022 $ 198,111 137,088 $ 335,199 $ 174,750 $ 217,000 196,348 $ 413,348 $ 923,297 Based on the balance sheets given, calculate the following financial ratios for each year: Calculate the following financial ratios for each year: a. Current ratio. Note: Do not round intermediate calculations and round…

Mary decides to buy a Treasury note futures contract for delivery of $100,000 face amount in September, at a price of 120′24.0. At the same time, Eric decides to sell a Treasury note futures contract if he can get a price of 120′24.0 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Mary at 120′24.0 and to buy one contract from Eric at 120′24.0. The price of the Treasury note decreases to 120′10.5. Calculate Eric's balance on margin account. Assume that initial margin is $1,890. Please note that loss should be entered with minus sign. Round the answer to two decimal places.

Don't used hand raiting and don't used Ai solution

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

Answer 6

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

Answer 7

Chapter 1, Problem 9PS

A

Summary Introduction

To calculate: The ratio of the real asset to total asset is to be determined.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

Answer 8

A

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset is 0.12.

Answer 9

A

Expert Solution

Answer 10

A

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$166.1 $13,926.0=0.12

Answer 13

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

Answer 14

B

Summary Introduction

To calculate: The ratio of the real asset to total asset for non-financial firm is to be determined.

Introduction:

The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

Answer 15

B

Expert Solution

Answer to Problem 9PS

The ratio of the real asset to total asset for nonfinancial firm is 0.50.

Answer 16

B

Expert Solution

Answer 17

B

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The balance sheet is given as -

Assets	$Billion	%Total	Liabilities and Net worth	$Billion	%Total
Real assets			Liabilities
Equipment and software	$4259	13.9%	Bonds and mortgages	5935	19.36%
Real estate	$9051	29.5%	Bank loans	612	2.00%
Inventories	$2010	6.6%	Other loans	1105	3.61%
Total real estates	$15320	50.0%	Trade debt	1969	6.42%
			Other	4267	13.92%
Financial asset			Total liabilities	13,888	45.31%
Deposit and cash	967	3.2%
Marketable securities	769	2.5%
Trade and consumer credits	2555	8.3%
Direct investment abroad	4055	13.2%
Other	6983	22.6%
Total financial asset	15329	50.0%	Net worth	16761	54.69%
Total	30649	100.0%		30649	100.00%

The ratio of the real asset to total asset is given as −

ratio=real assets total assets

Put the given values in formula.

ratio=$15,320 $30,649=0.50

Answer 20

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

Answer 21

C

Summary Introduction

To calculate: The reason for the difference is to be found.

Introduction: The physical assets are called as real assets which include precious metals, lands, commodities and natural resources.

Total assets can be defined by the total amount of asset owned by an individual or any person. These assets are represented in terms of economical value.

Answer 22

C

Expert Solution

Answer to Problem 9PS

Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, ratio of commercial bank is less than the non-financial firms.

Answer 23

C

Expert Solution

Answer 24

C

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

The value of the ratio of the real asset to total asset of commercial bank is less than the ratio of the real asset to total asset for nonfinancial firm. Loans are issued by the commercial banks which results in the lower real estate and high financial issue. Therefore, there is difference between ratio of the commercial bank and the non-financial firms.

Answer 27

Ch. 1 - Prob. 1PS Ch. 1 - Prob. 2PS Ch. 1 - Prob. 3PS Ch. 1 - Prob. 4PS Ch. 1 - Prob. 5PS Ch. 1 - Prob. 6PS Ch. 1 - Prob. 7PS Ch. 1 - Prob. 8PS Ch. 1 - Prob. 9PS Ch. 1 - Prob. 10PS

Answer to Problem 9PS

Explanation of Solution

Answer to Problem 9PS

Explanation of Solution

Answer to Problem 9PS

Explanation of Solution

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