Description
Review the following information on balance sheet analysis and business calculations:5210
https://www.youtube.com/watch?v=qDeTl6hos08https://www.youtube.com/watch?v=YHjlySvGiNY
Best Care Health Maintenance Organization (HMO) | |||
Balance Sheet | |||
June 30, 2011 (in thousands) | |||
Assets | |||
Current assets: Cash | |||
$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.
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Explanation & Answer
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What is Best Care’s net working capital for 2011? Show your work.
Net working capital is calculated by subtracting total current liabilities from total current asset.
Net working capital is a measure of li...