Assignment 2: Dropbox Assignment
Financial Statement Analysis of BestCare Health Maintenance Organization Financials
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)Balance SheetJune 30, 2011 (in thousands)AssetsCurrent assets:Cash$2,737Net premiums receivable$821Supplies$387Total current assets$3,945$3,945Net property and equipment$5,924Total assets$9,869 Liabilities and Net AssetsAccounts payable—medical$2,145servicesAccrued expenses$929Notes payable$382Total current liabilities$3,456$3,456Long-term debt$4,295Total liabilities$7,751$7,751Total assets$9,869Net assets-unrestricted (equity)$2,118Total liabilities and net assets$9,869Answer 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?
Submission Details:
- Present your analysis as a 3-page report in a Microsoft Word document formatted in APA style.
- On a separate page, cite all sources using APA format.
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
