Using Vertical Analysis Data to Reconstruct a Balance Sheet
A vertical analysis was previously conducted, using the Edgar Elgar, Inc. balance sheet. The results are shown below.
|
Assets |
Liabilities and Owners’ Equity |
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|
Current assets |
Current liabilities |
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|
Cash |
5.3% |
Accounts payable |
22.6% |
|
|
Accounts receivable |
12.6 |
Notes payable |
16.3 |
|
|
Inventories |
39.5 |
Accrued expenses |
3.6 |
|
|
Prepaid expenses |
1.6% |
Taxes payable |
1.3% |
|
|
Total current assets |
59.0% |
Total current liabilities |
43.8% |
|
|
Property, plant, and equipment |
Noncurrent liabilities |
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|
Land |
14.1% |
Bonds payable |
17.1 |
|
|
Mortgage payable |
7.3% |
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|
Buildings and equipment |
42.0 |
Total noncurrent liabilities |
24.4% |
|
|
Less: Accumulated |
Total liabilities |
68.2% |
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|
depreciation |
15.1% |
Shareholders’ equity |
||
|
Net book value |
26.9% |
Invested capital |
29.3% |
|
|
Total property, plant, and |
Retained earnings |
2.5% |
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|
equipment assets |
41.0% |
Total shareholders’ equity |
31.8% |
|
|
Total assets |
100.0% |
Total liabilities and |
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|
shareholders’ equity |
100.0% |
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Required
Using these results, reconstruct Edgar Elgar’s balance sheet, assuming that the total assets are known to be $4M.