Financial Statement Analysis of BestCare Health Maintenance Organization Financi
EXHIBIT 4.1 Sunnyvale Clinic Balance Sheet.docx
A balance sheet truly illustrates the health and wellbeing of any company. Consider what you have learned this week and apply it to this assignment.
Tasks:
Review the following balance sheet:
BestCare 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 |
$2,737 |
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Net premiums receivable |
$821 |
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Supplies |
$387 |
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Total current assets |
$3,945 |
$3,945 |
Net property and equipment |
$5,924 |
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Total assets |
$9,869 |
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Liabilities and Net Assets |
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Accounts payable—medical |
$2,145 |
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services |
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Accrued expenses |
$929 |
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Notes payable |
$382 |
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Total current liabilities |
$3,456 |
$3,456 |
Long-term debt |
$4,295 |
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Total liabilities |
$7,751 |
$7,751 |
Total assets |
$9,869 |
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Net assets-unrestricted (equity) |
$2,118 |
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Total liabilities and net assets |
$9,869 |
Answer the following questions after your analysis:
- What is BestCare’s net working capital for 2011?
- What is BestCare’s debt ratio? How does this ratio compare with Sunnyvale’s debt ratio as shown in Exhibit 4.1 (Chapter 4) in your textbook? (See attachment)
Submission Details:
- Present your analysis as a 2-page report in a Microsoft Word document formatted in APA style.
- On a separate page, cite all sources using APA format.
Assignment 2 Grading Criteria |
Maximum Points |
Provided an accurate analysis of BestCare’s net working capital for 2011. |
16 |
Provided an accurate debt ratio for BestCare. |
16 |
Correctly analyzed the comparison of BestCare’s debt ratio to Sunnyvale’s debt ratio. |
10 |
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and APA style attribution of sources; displayed accurate spelling, grammar, and punctuation. |
8 |
Total: |
50 |