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:
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.
