a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decmal places.)

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...
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Other assets
Intangible
assets
423.4
28 %
Other
794.7
5.2
Total other
1,218.1
8.0 96
14.2 9%
Net worth
2,171.3
assets
Total
S 15,309.6
100.0 | 9%
$ 15,309.6
100.0 9%
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, March 2016.
a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.)
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.)
Transcribed Image Text:Other assets Intangible assets 423.4 28 % Other 794.7 5.2 Total other 1,218.1 8.0 96 14.2 9% Net worth 2,171.3 assets Total S 15,309.6 100.0 | 9% $ 15,309.6 100.0 9% 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, March 2016. a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) 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.)
Examine the balance sheet of commercial banks in the following table.
Liabilities and Net
Assets
S Billion
96 Total
$ Billion
9% Total
Worth
Real assets
Liabilities
Equipment and
premises
193.7
13 9%
Deposits
s 10,277.3
67.1 96
Other real
Debt and other
48.9
0.3
990.0
6.5
estate
borrowed funds
Federal funds and
Total real assets
2426
16 | %
repurchase
agreements
942.0
6.2
Other
929.0
6.1
Total liabilities
$| 13,138.3
85.8 9%
Financial assets
Cash
890.3
5.8 %
Investment
5,032.1
32.9
securities
Loans and
6,711.3
43.8
leases
Other financial
1,215.2
7.9
assets
Total financial
S 13,848.9
90.5 9%
assets
Transcribed Image Text:Examine the balance sheet of commercial banks in the following table. Liabilities and Net Assets S Billion 96 Total $ Billion 9% Total Worth Real assets Liabilities Equipment and premises 193.7 13 9% Deposits s 10,277.3 67.1 96 Other real Debt and other 48.9 0.3 990.0 6.5 estate borrowed funds Federal funds and Total real assets 2426 16 | % repurchase agreements 942.0 6.2 Other 929.0 6.1 Total liabilities $| 13,138.3 85.8 9% Financial assets Cash 890.3 5.8 % Investment 5,032.1 32.9 securities Loans and 6,711.3 43.8 leases Other financial 1,215.2 7.9 assets Total financial S 13,848.9 90.5 9% assets
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