A vertical analysis was previously conducted, using the Edgar Elgar, Inc. balance sheet. The results are shown below.

Assets Liabilities and Owners’ Equity Current assets Current liabilities 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 Land 14.1% Bonds payable 17.1 Mortgage payable 7.3%

Buildings and equipment 42.0 Total noncurrent liabilities 24.4%

Less: Accumulated Total liabilities 68.2%

depreciation 15.1% Shareholders’ equity Net book value 26.9% Invested capital 29.3%

Total property, plant, and Retained earnings 2.5%

equipment assets 41.0% Total shareholders’ equity 31.8%

Total assets 100.0% Total liabilities and shareholders’ equity 100.0%

NOTE: Assume that this balance sheet was in balance before the vertical analysis was conducted.

Required Using these results, reconstruct Edgar Elgar’s balance sheet, assuming that the total assets are known to be $4M.