Best Care Debt Ratio Discussion Questions
Review the following information on balance sheet analysis and business calculations:5210
https://www.youtube.com/watch?v=qDeTl6hos08
https://www.youtube.com/watch?v=YHjlySvGiNY
Best Care Health Maintenance Organization (HMO) Balance Sheet June 30, 2011 (in thousands) Assets Current assets: Cash
Net premiums receivable
Supplies$2,737 $821 $387 Total current assets $3,945 $3,945 Net property and equipment $5,924 Total assets $9,869 Liabilities and Net Assets Accounts payable—medical services $2,145 Accrued expenses $929 Notes payable $382 Total current liabilities $3,456 $3,456 Long-term debt $4,295 Total liabilities $7,751 $7,751 Total assets $9,869 Net assets-unrestricted (equity) $2,118 Total liabilities and net assets $9,869 Answer the following questions after your analysis:
What is Best Care’s net working capital for 2011? Show your work.
What is Best Care’s debt ratio? Show your work.