TABLE 1.4 Balance sheet of U.S. nontinancial corporations $ Billion % Total $ Billion % Total Assets Real assets Equipment and intellectual property Real estate Inventories Total real assets $ 6,936 13,319 2,280 $22,535 16.6% 31.9 5.5 54.0% Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities $ 6,299 985 1,140 2,146 7,495 $18,065 15.1% 2.4 2.7 5.1 17.9 43.3% Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total $ 1,070 1,011 2,800 14,344 19,224 $41,759 2.6% 2.4 6.7 34.3 46.0 100.0% Net worth $23,694 $41,759 56.7% 100.0% Problem 1-12 Examine the balance sheets given in Table 1.3. a. What is the ratio of real assets to total assets for commercial banks? (Round your answer to 4 decimal places.) Ratio of real to total assets b. Assuming that the listed intangible assets are not real, what is that ratio for nonfinancial firms? (Table 1.4) (Round your answer to 4 decimal places.) The ratio for nonfinancial firms TABLE 1.3 Balance sheet of FDIC-insured commercial banks and savings institutions % Total $ Billion % Total Assets $ Billion Real assets Equipment and premises $ 120.2 Other real estate 10.9 Total real assets $ 125.2 0.7% 0.1 0.7% Liabilities and Net Worth Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities $12,894.7 1,170.9 233.7 611.1 $14,910.4 76.8% 7.0 1.4 3.6 88.9% Financial assets Cash Investment securities Loans and leases Other financial assets Total financial assets Other assets Intangible assets Other Total other assets Total $ 1,810.0 3,559.5 9,183.9 1,059.2 $15,6 12.5 10.8% 21.2 54.7 6.3 93.0% $ 350.4 692.1 $ 1,042.5 $16,780.2 2.1% 4.1 7.2% 100.0% Net worth $ 1,869.8 $16,780.2 11.1% 100.0%