Homework: Balance Sheet Analysis and Business Calculations
Instructions
Review the following information on balance sheet analysis and business calculations:
Balance Sheet Analysis
Calculating Debt Ratio in Excel
Calculating Working Capital
Review the following balance sheet:
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Best Care Health Maintenance Organization (HMO)
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Balance Sheet
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June 30, 2011 (in thousands)
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Assets
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Current assets:
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Cash
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$2,737
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Net premiums receivable
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$821
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Supplies
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$387
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Total current assets
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$3,945
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$3,945
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Net property and equipment
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$5,924
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Total assets
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$9,869
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Liabilities and Net Assets
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Accounts payable-medical services
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$2,145
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Accrued expenses
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$929
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Notes payable
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$382
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Total current liabilities
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$3,456
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$3,456
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Long-term debt
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$4,295
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Total liabilities
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$7,751
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$7,751
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Total assets
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$9,869
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Net assets-unrestricted (equity)
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$2,118
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Total liabilities and net assets
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$9,869
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Answer the following questions after your analysis:
a. What is Best Care's net working capital for 2011? Show your work.
b. What is Best Care's debt ratio? Show your work.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.